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UK Oct services PMI strongest since Jan 2016

The services sector activity in the UK economy improved much better-than markets’ expectations last month, hitting the highest levels since March 2011, a fresh report from Markit Economics showed on Thursday.

The services PMI quickened its pace of expansion to 54.5 in Oct versus a 52.6 reading booked in Sept. Markets predicted a slightly weaker print of 52.4 last month.

Key findings from Markit:

Activity and new business both rise at strongest rates since January

Strongest input price inflation since March 2011

Charge inflation at five-and-a-half year record

Chris Williamson, Chief Economist at Markit, noted: ““An encouraging picture of the economy gaining further growth momentum in October is marred by news that inflationary pressures are rising rapidly.”

“Business activity is growing at a rate consistent with solid economic growth of 0.4-0.5% in the fourth quarter (the surveys suggest the initial 0.5% GDP growth estimate for the third quarter could be revised slightly lower). What’s especially reassuring is that growth is also becoming more balanced.”

 

United Kingdom Markit Services PMI above forecasts (52.4) in October: Actual (54.5)

United Kingdom Markit Services PMI above forecasts (52.4) in October: Actual (54.5)
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