–UK Oct CIPS/Markit Services PMI 51.3 Vs Sep 52.9
–UK Oct CIPS/Markit Prices Charged 48.6 Vs Sep 50
LONDON (MNI) – The service sector continued to expand in October
but the pace of growth slowed, the CIPS/Markit survey showed.
The October CIPS/Markit index for October, published by Reuters,
came in at 51.3, down from 52.9 in September. This was below analysts’
median forecast for a 52.0 outturn but at least in positive territory
after the collapse of manufacturing activity.
The service sector data are the third of CIPS’ October trilogy. The
October manufacturing Purchasing Managers Index fell sharply back into
contractionary territory, dropping through the 50 breakeven level to
47.4 from 50.8 in September.
The construction index, however, spiked to 53.9 from 50.1,
highlighting the volatility of the monthly CIPS data.
The services survey showed inflation pressures easing markedly.
Prices charged fell to 48.6 from September’s 50 reading, the first
reading showing falling prices, that is a below 50 reading, since
September last year.
Markit said business confidence for future activity hit its
highest level since May.
Some Bank of England Monetary Policy Committee members have warned
growth could turn negative in the fourth quarter, and the relatively
weak October CIPS services data do not rule out this possibility .
“Another rather disappointing survey adds to fears that the UK
recovery continued to lose momentum at the start of the fourth quarter,”
Chris Williamson, Markit’s chief economist, said.
–London newsroom 0044 207 862 7491; email:drobinson@marketnews.com
[TOPICS: M$B$$$,M$BDS$,MABDS$]
