Source: IHS Markit
Service providers in the United Kingdom posted a three-month high in terms of business activity growth in October, driven by the reopening of the economy and easing of restrictions. EWU is flat premarket.
- The headline seasonally adjusted IHS Markit/CIPS UK Services PMI Business Activity Index stood at 59.1 in October, up from September’s 55.4.
- The latest reading is the fastest growth recorded in three months since July.
- Growth was attributed to the rising business and consumer spending during the month, as local and international restrictions were eased.
- Strong demand was reported in the hospitality, leisure, and transportation sectors. Staffing was down in some firms as they were poached by competitors.
- Operating expenses posted a steep growth during the month, with most of the firms reporting a rise in cost burdens mainly due to higher wages.
- Higher expenses were also due to energy, fuel, raw materials, transport, and staff.