UK services growth hits 8-month high in October, PMI shows

UK Services Growth Reaches 8-Month Peak in October, PMI Data Shows

Overview of UK Services Sector Performance in October

Nov 4 (Reuters) - British services companies last month reported the strongest growth since the start of the US-Iran conflict in February, helped by rising orders and employment, but they also noted sharper cost pressures, a survey showed on Wednesday.

PMI Data and Key Findings

The S&P Global UK Services Purchasing Managers' Index (PMI) rose to an eight-month high of 52.8 from 52.1 in September, a little lower than October's preliminary "flash" reading of 53.1. Readings above 50 denote growth.

Factors Driving Growth

"Greater workloads were attributed to an improved pipeline of sales opportunities, particularly those linked to AI investment spending," said S&P Global Market Intelligence's economics director Tim Moore.

Highlights from the S&P Global Report

• S&P Global said the report pointed to continued resilience in the economy but underscored why the Bank of England looks likely to raise interest rates on Thursday for the first time since 2023
• The survey's gauge of employment rose by 2 points, moving above the 50-point threshold for growth for the first time since September 2024
• Input prices rose in October at the fastest rate since May, although the prices charged index cooled slightly compared with September
• The survey's gauge of future activity rose to its highest level since February
• The composite PMI, which combines the services and manufacturing readings, rose to 52.9 in October from 52.0 in September – also the highest reading since February

Market Implications and Outlook

(Reporting by Andy Bruce; Editing by Joe Bavier)