UK October flash services PMI 51.1 vs 51.0 expected

• Prior 50.8
• Manufacturing PMI 49.6 vs 46.6 expected
• Prior 46.2
• Composite PMI 51.1 vs 50.6 expected
• Prior 50.1

Key Findings:

• Faster rate of UK private sector output growth recorded in
  October, while cost inflation eases to 11-month low

Comment:

Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence:

“October’s flash UK PMI survey brings hope that
September was a low point for the economy from which
business conditions are starting to improve. Output
has picked up, with a particularly welcome return to
growth for manufacturing for the first time in over a
year accompanied by an upturn in demand for services,
notably among consumers. Business confidence has
also brightened slightly, job losses have moderated,
and inflationary pressures are coming back to levels
consistent with the Bank of England’s 2% target.

“However, even with a helping hand from restarted
production at JLR, the overall pace of growth signalled
by the PMI remains consistent with only sluggish GDP
growth of around 0.1%. And, while easing, jobs continue
to be cut amid a backdrop of business confidence that
remains subdued by historical standards. Goods exports
also continue to fall at a worryingly steep rate, in part
due to the global trade disruptions caused by US tariff
policy.

“Companies are clearly treading cautiously in terms of
spending, investment and hiring ahead of the upcoming
Budget, the outcome of which has the potential to once
again sway the business mood in the months ahead.”

This article was written by Giuseppe Dellamotta at investinglive.com.