UK November final services PMI 51.3 vs 50.5 prelim

• Prior 52.3
• Final Composite PMI 51.2 vs 50.5 prelim
• Prior 52.2

Key findings:

• Marginal expansion of business activity in
  November
• Fastest fall in employment since February
• Prices charged inflation lowest since January 2021

Comment:

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

“November data revealed an abrupt end to the steady
improvement in order books seen since the summer.
Unfavourable demand conditions were signalled in both
domestic and export markets. Lower workloads led to
a renewed slowdown in business activity growth across
the UK service economy, with the latest expansion
much softer than the post-pandemic trend. Moreover,
staffing numbers were trimmed to the greatest extent
since February.

“Survey respondents widely commented on business
challenges linked to fragile client confidence,
heightened risk aversion and elevated policy
uncertainty in the run up to the Budget. Many firms
noted that major spending decisions had been delayed,
while some also cited long-term growth headwinds from
subdued investment spending.

“Intensifying price competition at home and abroad,
combined with weal sales pipelines, contributed to an
erosion of margins across the service economy. Input
cost inflation accelerated during November, mostly
driven by higher salary payments, but prices charged by
service sector firms increased at the slowest pace for
nearly five years.”

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