UK Service Sector Logs Weakest Growth In Almost A Year

RTTNews | 19 hari yang lalu
UK Service Sector Logs Weakest Growth In Almost A Year

(RTTNews) - The UK service sector grew at the slowest pace since November last year as heightened uncertainty and concerns about the domestic economic outlook damped new work, the S&P Global purchasing managers' survey showed on Tuesday.

The final services Purchasing Managers' Index registered 52.0 in October, down from 52.4 in September. The reading was above the initial estimate of 51.8.

The survey showed that firms delayed spending decision due to heightened uncertainty ahead of the Autumn budget. Geopolitical tensions also weighed on willingness to spend.

Total new work grew at the slowest pace since June but still slightly stronger than seen on average in the first of the year. Firms linked improving order books to resilient business and consumer spending.

There was a solid rise in new work from abroad and the rate of expansion accelerated to its fastest since March 2023. Companies reduced staffing numbers for the first time since December 2023. The moderate decrease reflected the non-replacement of voluntary leavers amid budget constraints, efforts to boost productivity and difficulties finding suitable candidates to fill vacancies.

Regarding prices, the survey showed that input cost inflation edged up to a three-month high but remained much softer than seen in the first half of 2024. Average prices charged by service providers increased slightly from September's 43-month low.

Business confidence eased to the lowest in four months. Service providers typically commented on positive sentiment regarding their sales pipelines and broader market conditions but many suggested that political uncertainty ahead of the budget had weighed on sentiment.

The overall private sector output growth moderated further in October, reflecting slower rates of expansion in both manufacturing and service sectors. The composite output index fell to 51.8 from 52.6 in the previous month. The score was the lowest since November 2023. The flash reading was 51.7.

read more
UK Retail Sales Fall More Than Expected

UK Retail Sales Fall More Than Expected

UK retail sales declined more than expected in October as consumers reduced their spending on food and clothing, data released by the Office for National Statistics showed on Friday. Retail sales dropped 0.7 percent on a monthly basis in October, in contrast to the revised 0.1 percent rise in September. Sales were expected to fall 0.3 percent.
RTTNews | 2 hari yang lalu
UK Budget Deficit Exceeds Expectations In October

UK Budget Deficit Exceeds Expectations In October

The UK budget deficit exceeded expectations in October and hit the second highest October level on record largely reflecting the increase in debt interest payments. Public sector net borrowing increased to GBP 17.4 billion from GBP 15.8 billion in the previous year, data from the Office for National Statistics revealed Thursday.
RTTNews | 3 hari yang lalu
UK Inflation Accelerates More Than Forecast

UK Inflation Accelerates More Than Forecast

UK consumer price inflation accelerated more than expected in October, lowering the chances of a rate cut at the upcoming monetary policy meeting in December. The consumer price index rose 2.3 percent on a yearly basis, following September's 1.7 percent increase, which was the lowest since April 2021, the Office for National Statistics reported Wednesday.
RTTNews | 4 hari yang lalu
UK Economy Logs Meager Growth In Q3

UK Economy Logs Meager Growth In Q3

In a blow to Chancellor Rachel Reeves, the UK economy grew only marginally in the third quarter on weaker growth in services output, data from the Office for National Statistics revealed Friday. Gross domestic product grew 0.1 percent sequentially, following growth of 0.5 percent in the second quarter and was also weaker than the forecast of 0.2 percent.
RTTNews | 9 hari yang lalu
UK Jobless Rate Rises; Wage Growth Slows

UK Jobless Rate Rises; Wage Growth Slows

The UK unemployment rate rose more than expected in the third quarter and wage growth softened, adding pressure on the Bank of England to cut interest rates further. The unemployment rate rose to 4.3 percent in the September quarter from 4.0 percent in three months to August period, the Office for National Statistics reported Tuesday. The rate was seen at 4.1 percent.
RTTNews | 12 hari yang lalu
Bank Of England Cuts Rate By 25 Bps; Future Easing To Be Gradual

Bank Of England Cuts Rate By 25 Bps; Future Easing To Be Gradual

The Bank of England reduced its benchmark rate for the second time this year citing continued progress in disinflation but suggested that further easing is set to be gradual as the last week's budget has upward impact on inflation. The Monetary Policy Committee decided to lower the rate by 25 basis points to 4.75 percent. The outcome of the two-day meeting matched expectations.
RTTNews | 17 hari yang lalu
UK House Prices Rise For Fourth Straight Month

UK House Prices Rise For Fourth Straight Month

UK house prices increased for the fourth straight month to hit a record high in October but prices are expected to climb at a moderate pace as slower interest rate cuts by the Bank of England and government policies might damp demand, mortgage lender Halifax said Thursday. House prices grew 0.2 percent from September, as expected. This follows a 0.3 percent gain each in August and September.
RTTNews | 17 hari yang lalu