PMI: Services sector employment rising

Activity in the financial services, technology and leisure sectors grew by its fastest pace in 18 months in October, prompting an increase in employment .

The Purchasing Managers Index (PMI) for the services sector rose to 57.3 last month from 56.9 in September.

According to the report, employment in the services sector grew for a second consecutive month in October, and at its fastest rate in more than a year.

Confidence among executives in the industry is increasing. The confidence component of the index rose to 76.9 last month from 75.3 in September.

However, costs remain an issue for many companies, with higher wage bills and insurance premiums pushing the costs index up to a seven-month high of 61.4.

The PMI also revealed that strong competition means that companies are unable to raise prices to compensate for these higher costs, with the charges component coming in at 47.3, below the 50 point margin dividing positive and negative growth, for the seventh month in a row.

The index is based on a survey of around 600 executives in the services sector by NTC Research.