UK October final services PMI 49.5 vs 49.2 prelim

<ul><li>Prior 49.3</li><li>Composite PMI 48.7 vs 48.6 prelim</li><li>Prior 48.5</li></ul><p>Little change to the initial estimates as services output continue to be dampened by weaker demand conditions at the start of Q4. Of note, the details show the sharpest decline in new work since November
2022. S&amp;P Global notes that:</p><p>"A shallow downturn in UK service sector activity
persisted in October as businesses struggled to make
headway against a backdrop of worsening domestic
economic conditions and stretched household budgets.
</p><p>"Forward-looking survey indicators suggested that
service providers will continue to skirt with recession.
The degree of optimism towards the business outlook
was the lowest in 2023 so far, despite relief that interest
hikes have taken a pause this autumn.
</p><p>"New orders meanwhile decreased to the greatest extent
since November 2022 as cost of living pressures and
elevated interest rates hit consumer spending. Survey
respondents also noted that weak business investment
patterns and a wait-and-see approach to new projects
remained constraints on order books. A return to rising
export sales was a positive development in October, with
strong demand from clients in the US and Middle East
cited as long-term growth drivers.
</p><p>"Encouragingly, input cost inflation softened to the
lowest for more than two-and-a-half years in October
as falling raw material prices and supplier discounting
helped to constrain pressures on business expenses.
Higher wages and fuel bills were still passed on to
clients, which resulted in the strongest increase in
average prices charged inflation for three months."</p>

This article was written by Justin Low at www.forexlive.com.