UK Service Sector Logs Moderate Growth In October - ConsultFX

UK Service Sector Logs Moderate Growth In October

The UK service sector registered the slowest rate of expansion since March, survey results from IHS Markit and Chartered Institute of Procurement & Supply showed Monday. The Purchasing Managers' Index dropped more-than-expected to 52.2 in October from 53.9 in September. The expected level was 53.4.

Although the headline index has remained above the 50.0 no-change value in each of the past 27 months, the latest reading was the second lowest since July 2016.

Respondents noted that heightened economic uncertainty and a soft patch for new work had held back business activity growth.

"While it is not surprising to see that Brexit uncertainties are increasingly undermining business activity at this stage of the negotiations, the survey responses also suggest that the economy is facing other headwinds, including a broader global slowdown, trade wars, heightened geopolitical uncertainty and tightening financial market conditions," Chris Williamson, chief business economist at IHS Markit, said.


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