UK PMI Services was finalized at 59.1 in October, up sharply from September’s 55.4. PMI Composite was finalized at 57.8, up from September’s 54.9. Markit said cost inflation accelerated to its strongest in over 25 years. Average prices charged also increased at survey-record pace.
Tim Moore, Economics Director at IHS Markit: “Looser international travel restrictions and greater domestic mobility helped to lift the UK service sector recovery out of its recent malaise in October. Business activity expanded at the fastest pace since July, driven by the first acceleration in new order growth for five months. The latest survey also pointed to the best month for export sales since June 2018.
“Tight labour market conditions persisted in October… Average prices charged increased at a survey-record pace, reflecting across the board pressures on operating expenses… Record rates of input price and output charge inflation appear to have dampened business optimism, which eased to its lowest since January.”
