- Prior 50.8
- Final Composite PMI 52.2 vs 51.1 prelim
- Prior 50.1
- Full report here
Key findings:
- Business activity and new order growth accelerate since September
- Employment close to stabilisation
- Input price inflation at 11-month low
Comment:
Tim Moore, Economics Director at S&P Global Market Intelligence, said:
"The latest survey offered some positive signals for the UK service economy, with output growth stronger than the earlier 'flash' estimate for October, and therefore confirming a notable improvement from September's five- month low. Similarly, the rate of new business expansion gained momentum, with the latest upturn among the strongest seen over the past year.
"Service providers typically commented on a turnaround in new client wins and better-than-expected sales performances in October. A number of firms noted resilient customer demand, especially in domestic markets, despite elevated business uncertainty and delayed decision-making on major spending ahead of the Budget.
"Labour market conditions finally showed some signs of stabilisation, with the pace of job cuts in the service economy slowing considerably since September. This was helped by improved confidence towards the business outlook. Output growth expectations rebounded to a 12-month high in October. Lower borrowing costs and planned investments in new technologies were cited as factors supporting positive sentiment.
"Higher wages were again widely reported as pushing up input prices. However, the overall pace of cost inflation was the lowest since November 2024. Adding to signs of easing inflationary pressure, latest data indicated that service providers increased their prices charged to the least marked extent since June."
