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05.11.2019 17:45

UK service sector flatlines in October - IHS Markit/CIPS

According to the report from IHS Markit/CIPS, the UK service sector registered no change in output in October compared with one month previously. Although this represented a slight improvement on September's contraction, business levels were supported by existing contracts as the volume of new work declined further. This led to more job losses in the sector, albeit at a slower rate. The outlook improved slightly as a number of firms expected Brexit to be resolved early next year, reducing uncertainty, but overall sentiment remained historically weak.

The seasonally adjusted UK Services PMI Business Activity Index ticked up to 50.0 in October, from September's 49.5, signalling no change in service sector output. Economists had expected an increase to 49.7. The latest figure was among the lowest registered in the past ten-and-a-half years, and below each of the trend levels for the first, second and third quarters of 2019 (50.1, 50.5 and 50.5 respectively).


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