UK October's Services PMI the Lowest Since March 2018

Forex News

Business activity in Britain's services sector fell to a seven-month low in October. The IHS Markit/CIPS purchasing managers' index (PMI) fell to 52.2 in October from 53.9 in September, and marked its lowest since March. Economists had expected the indicator to be 53.3 level last month.

The weak service data follows the softest manufacturing PMI since the Brexit vote. According to IHS Markit, the two PMIs, combined with more robust construction data, are jointly the weakest since March and point to quarterly growth of 0.2% if things do not improve. Last week the Bank of England said, that the Britain's GDP growth would fall to 0.3% in the final three months of 2018 from an estimated 0.6% in the third quarter.

Also, businesses' expectations for stronger activity over the next 12 months were the weakest since July 2016, when they briefly hit a post-financial crisis low following the vote to leave the European Union. Companies also reported headwinds from a slowing global economy, trade tensions, and financial market turbulence.