UK PMI Services was finalized at 56.1 in September, down from August’s 58.8. PMI Composite was finalized at 56.5, down from August’s 59.1. It’s the third successive month of growth, albeit at a slower rate. Rise in new business was linked to improved market conditions. But cost concerns lead to another round of job losses.
Chris Williamson, Chief Business Economist at IHS Markit: “The UK service sector showed encouraging resilience in September… Optimism about the year ahead has meanwhile cooled somewhat, hinting that risks for coming months lie skewed to the downside. Companies grew increasingly worried about the impact of a second wave of virus infections and the gradual withdrawal of government support, especially the furlough scheme. Brexit worries are also rising again, causing hesitancy in spending and investment decisions. While the third quarter will inevitably see a strong economic rebound, growth in the fourth quarter looks likely to be far less impressive.”
