- Prior 49.3
- Composite PMI 48.7 vs 48.6 prelim
- Prior 48.5
Little change to the initial estimates as services output continue to be dampened by weaker demand conditions at the start of Q4. Of note, the details show the sharpest decline in new work since November 2022. S&P Global notes that:
"A shallow downturn in UK service sector activity persisted in October as businesses struggled to make headway against a backdrop of worsening domestic economic conditions and stretched household budgets.
"Forward-looking survey indicators suggested that service providers will continue to skirt with recession. The degree of optimism towards the business outlook was the lowest in 2023 so far, despite relief that interest hikes have taken a pause this autumn.
"New orders meanwhile decreased to the greatest extent since November 2022 as cost of living pressures and elevated interest rates hit consumer spending. Survey respondents also noted that weak business investment patterns and a wait-and-see approach to new projects remained constraints on order books. A return to rising export sales was a positive development in October, with strong demand from clients in the US and Middle East cited as long-term growth drivers.
"Encouragingly, input cost inflation softened to the lowest for more than two-and-a-half years in October as falling raw material prices and supplier discounting helped to constrain pressures on business expenses. Higher wages and fuel bills were still passed on to clients, which resulted in the strongest increase in average prices charged inflation for three months."
