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.”

Full release here.

In BCC’s Quarterly Economic Survey, nearly half of UK firms (46%) reported decrease in domestic sales in Q3, down from 73.% in Q2. 27 of firms reported increase in domestic sales while 27% reported no change. Also, nearly half of firms (47%) reported decreases in export sales, down from 72% in Q2. 24% report3e3d increase in exports sales,.

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: “Our latest survey indicates that underlying economic conditions remained exceptionally weak in the third quarter. While the declines in indicators of activity slowed as the UK economy gradually reopened, they remain well short of pre-pandemic levels with little sign of a swift ‘V’-shaped recovery.”

Full release here.

UK PMI Manufacturing was finalized at 54.1 in September, down from two-and-a-half year high of 55.2 in August. Nevertheless, reading stayed expansionary above 50 for the fourth consecutive month, longest streak since early-2019. However, Markit also noted further job losses reported.

Rob Dobson, Director at IHS Markit: ” Although rates of expansion in output and new orders lost some of the bounce experienced in August, they remained solid and above the survey’s long-run averages. Export demand is also picking up… Business sentiment remained positive as a result… There remain considerable challenges ahead…. especially true for the labour market, which saw further job losses and redundancies in September.

“The full economic cost incurred by 2020 will likely rise further as governments look to re-introduce some restrictions, job support schemes are tapered and rising numbers of firms start focussing on Brexit as a further cause of uncertainty and disruption during the remainder of the year.”

Full release here.