We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

UK Oct service sector PMI at 2-year low


Employment dipped as new business shrank over the month

Article comments

Service sector activity in the UK has fallen to a two-year low according to the latest service sector purchasing managers’ index (PMI).

The October PMI services index from Markit/CIPS, published on Monday, fell to 50.6 from 52.2 in September. While any score above 50 indicates growth, the level is the lowest on record for almost two years.

Markit noted that growth in new business eased as employment in the sector dipped for the second successive month.

"The latest UK services PMI data provide a warning to those who saw the strong growth in the GDP in the third quarter as symbolising the start of a strong and speedy economic recovery," according to Markit economist Andrew Harker.

"The expectation among firms is for activity to improve over the coming year, but the road to full economic recovery still looks to be a long one," he added.

Howard Archer, chief UK economist at IHS Global Insight, said the latest survey was disappointing, and fuels concern that the economy is struggling to develop even modest underlying growth despite the better-than-expected rebound in GDP in the third quarter.

“The survey certainly keeps open the possibility that the Bank of England could go for more Quantitative Easing at the conclusion of the November MPC meeting on Thursday,” he added.

Last week, the construction PMI index for October recorded a marginal rise.

Share:

Recommended Articles

Comments

UK Oct service sector PMI at 2-year low
Financial Planning

Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..


Amazon invests $2bn more in India as online retail booms

The announcement comes a day after an Indian retailer got $1bn in fundingmore ..

Twitter buys NY image start-up Madbits

Madbits uses deep learning techniques to understand the content of an imagemore ..

Barclays posts 7% fall in pretax profits

Barclays’ costs fall 4.5% with increased digitisationmore ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *