UK Services Sector Posts Slight Rebound in September

Source: IHS Markit

The United Kingdom’s services sector activity growth posted a slight rebound in September, even as supply issues continued to dampen the industry during the month. EWU is up 0.55% premarket.

• The IHS Markit/CIPS UK Services PMI Business Activity Index stood at 55.4 in September, up from the six-month low of 55.0 in August.
• A number of firms reported higher output levels for the month, driven mainly by confidence among clients and favorable business conditions as restrictions eased.
• Several firms said activity declined due to supply chain disruptions and staff shortages, particularly in the hospitality sector.
• New order growth slipped for the fourth straight month, with new business volumes posting the slowest growth since March.
• Supply constraints caused another round of steep price increases, with half of the firms recording higher cost burdens. 
• The latest reading marked the second-fastest rate of inflation since data collection started 25 years ago, following only that recorded in July.
• Business optimism eased slightly, but a majority of the firms expect a rise in output in the coming year, while 8% predict a decline.