Services expansion slows further
The UK’s dominant services sector continued to experience a slowing rate of growth at the end of the third quarter, according to the latest PMI survey data from Markit and CIPS. Total business activity rose at the slowest pace since April 2013, as did the volume of incoming new work. The Business Activity Index remained above 50.0 in September, signalling a continuation of the current spell of rising services output, however, the headline figure fell for the third month in succession to 53.3, from August’s 55.6, indicating the weakest rate of growth since April 2013.
Chris Williamson, chief economist at Markit, comments: “Weakness is spreading from the struggling manufacturing sector, hitting transport and other industrial-related services in particular. There are also signs that consumers have become more cautious and are pulling back on their leisure spending, such as on restaurants and hotels. Wider business service sector confidence has meanwhile also been knocked by global economic worries and financial market jitters.”