UK service businesses reported that a dearth of workers with the right skills in August held back hiring and expansion plans, according to the UK Services Purchasing Managers’ Index. On the other hand, business activity increased, and employment grew at its fastest in six months.

The index was released Wednesday by IHS Markit and the Chartered Institute of Procurement and Supply.

Services sector firms were more upbeat than those in other sectors, but business optimism was more subdued than the index’s survey average as uncertainty over Brexit dampened client operations, said Duncan Brock, group director at the CIPS.

“Struggles around securing talent and the right skills were also a drag on a sector highly-dependent on trained staff even though job creation rose to its highest levels for half a year,” Brock said.

Difficulties finding skilled staff contributed to higher salary payments in August, according to the index’s survey.

The Guardian reported news of the difficulty in finding workers with the right skills comes as the UK noted a record annual decline last month in migrants coming from the EU.

Overall, the UK Services Purchasing Managers’ index rose to a reading of 54.3 in August from 53.5 in July.

“Faster service sector growth comes as much-needed welcome news after disappointing manufacturing and construction PMI surveys in August,” said Chris Williamson, chief business economist at IHS Markit. “The survey data indicate that the economy is on course to expand by 0.4% in the third quarter, a relatively robust and resilient rate of expansion that will no doubt draw some sighs of relief at the Bank of England after the rate hike earlier in the month.”