UK October final services PMI 52.3 vs 51.1 prelim

• Prior 50.8
• Final Composite PMI 52.2 vs 51.1 prelim
• Prior 50.1
• Full report here

Key findings:

• Business activity and new order growth accelerate
  since September
• Employment close to stabilisation
• Input price inflation at 11-month low

Comment:

Tim Moore, Economics Director at S&P Global Market
Intelligence, said:

“The latest survey offered some positive signals for the
UK service economy, with output growth stronger than
the earlier ‘flash’ estimate for October, and therefore
confirming a notable improvement from September’s five-
month low. Similarly, the rate of new business expansion
gained momentum, with the latest upturn among the
strongest seen over the past year.

“Service providers typically commented on a turnaround
in new client wins and better-than-expected sales
performances in October. A number of firms noted
resilient customer demand, especially in domestic
markets, despite elevated business uncertainty and
delayed decision-making on major spending ahead of the
Budget.

“Labour market conditions finally showed some signs
of stabilisation, with the pace of job cuts in the service
economy slowing considerably since September. This was
helped by improved confidence towards the business
outlook. Output growth expectations rebounded to a
12-month high in October. Lower borrowing costs and
planned investments in new technologies were cited as
factors supporting positive sentiment.

“Higher wages were again widely reported as pushing up
input prices. However, the overall pace of cost inflation
was the lowest since November 2024. Adding to signs of
easing inflationary pressure, latest data indicated that
service providers increased their prices charged to the
least marked extent since June.”

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