Latest data released by Markit/CIPS - 5 October 2020
- Composite PMI 56.5 vs 55.7 prelim
The preliminary report can be found here. The revision higher is decent but still points to some slowdown in the services sector, with the momentum in the recovery losing some steam after the strong push from May to August.
With government measures starting to wear off, there will be major concerns that the economy will stutter in the latter stages of the year so we'll see how that goes.
Markit notes that:
"The UK service sector showed encouraging resilience in September, with business activity continuing to grow solidly despite the government's Eat Out to Help Out scheme being withdrawn. Unsurprisingly, spending in the restaurant sector slumped after spiking higher in August, and many other consumer services activities showed a similar slide back into contraction as renewed lockdown measures were introduced, causing the overall rate of expansion to moderate.
"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."
