UK PMI Services index was finalized at to 49.5 in October up fractionally from 49.3 in September, lingering in contraction territory for the third consecutive month. PMI Composite showed a minor improvement to 48.7 from an 8-month nadir of 48.5
Economics Director at S&P Global Market Intelligence, Tim Moore, highlighted, “A shallow downturn in UK service sector activity persisted in October as businesses struggled to make headway against a backdrop of worsening domestic economic conditions and stretched household budgets.”
The outlook remains cautious at best. “Forward-looking survey indicators suggested that service providers will continue to skirt with recession,” said Moore, noting that business optimism has dipped to its lowest point of the year.
On the brighter side, there was a silver lining with a slight uptick in new export sales. Furthermore, input cost inflation showed signs of easing, reaching its softest point in over two years due to reduced raw material prices and supplier discounting.
Nevertheless, this hasn’t stopped businesses from hiking prices. “Higher wages and fuel bills were still passed on to clients, which resulted in the strongest increase in average prices charged inflation for three months,” Moore explained.
