The services sector contracted last month at its fastest pace since May as businesses struggled under the strain of a third nationwide lockdown.
The IHS Markit/CIPS purchasing managers’ index fell from 49.4 to 39.5 in January. This was slightly better than the 38.8 forecast by economists, but still well below the 50 mark that separates growth from contraction.
Tight restrictions on travel, leisure and hospitality have taken their toll on the services sector, which is suffering disproportionately during the lockdowns. Staffing levels fell for an eleventh month in a row and layoffs intensified, IHS Markit said
The manufacturing sector is holding up better as factories have been able to continue operating during the lockdown. IHS Markit’s PMI for the manufacturing sector measured 54.1 for last
