UK PMI Services as finalized at 52.0, down from September’s 52.4 and marking the lowest level since November 2023. PMI Composite similarly slipped to 51.8, a decline from 52.6 the previous month, also the lowest since last November.
According to Tim Moore, Economics Director at S&P Global Market Intelligence, the delay in policy clarity ahead of the Autumn Budget created a “wait-and-see” atmosphere, dampening business confidence and spending. Added to this were broader geopolitical uncertainties and anticipation of the US election, both contributing to businesses holding back on investment decisions.
Higher wages contributed to another month of strong input cost inflation, which rose to a three-month high but remained lower than in early 2024. Nevertheless, Moore noted that output charge inflation stayed near the 43-month low observed in September, continuing the “longer-term trend of decelerating price pressures”.
