–Adds Detail To Version Transmitted At 0941 GMT
–UK Oct CIPS Services PMI 53.2 Vs 52.8 In Sep – Markit/Reuters
–UK Oct CIPS All Sector Output Index 53.6 Versus 53.2 In September
–Detail Shows Some Weakness; Employment Dips
–Median Forecast Was 52.6; Oct Outturn Highest Since June
LONDON (MNI) – Service sector growth picked up in October,
exceeding analysts’ expectations and driving up the all sector
Purchasing Managers Index, the latest Markit/Chartered Institute of
Purchasing and Supply survey, published by Reuters, showed.
The PMI services activity index rose to 53.2 in October from 52.8
in September, above analysts’ median forecast for a 52.6 outturn. The
detailed data, however, showed some weakness, with employment dipping
and CIPS saying business expectations were “subdued”.
Markit produces an “all-sector Output Index” based on the three UK
PMI surveys – for construction, manufacturing and services. This rose to
53.6 in October from 53.2 in September, the second consecutive monthly
rise.
Markit’s chief economist Chris Williamson said in a note that the
all sector output index showed a “slight upturn in the rate of growth”
but that on the PMI readings the UK’s growth rate peaked back in
February and the current rate of growth was below the pre-recession long
run average of 54.8.
Service sector payroll numbers in October were down marginally on
September, although there was stronger growth in new work.
“October’s survey suggests a modest improvement in service sector
growth, supported by a slightly stronger expansion from new business.
However, on both output and new orders measures, rates of expansion
remain soft compared to long-run averages,” Paul Smith, Senior
Economist at Markit, said.
Smith added that “the latest data … suggest that the (services)
sector is set to make a below par contribution to GDP in the coming
months.”
The CIPS services survey is the last piece of significant data
before the Bank of England’s Monetary Policy Committee holds its vote on
policy Thursday.
The October UK CIPS construction index fell to 51.6 in October, an
eight month low, but manufacturing headed in the other direction, rising
to 54.9 from September 53.5 and hitting its highest level since July.
–London newsroom 0044 207 862 7491; email:drobinson@marketnews.com
[TOPICS: M$B$$$,M$BDS$,MT$$$$,MABDS$]