UK services PMI eases to 53.9 in September

The services sector activity in the UK economy stalled its rebound and eased slightly in the month of September, but almost in line with the consensus forecast, a fresh report from Markit Economics showed on Wednesday.

The services PMI dropped to 53.9 in September versus a 54.3 reading booked in August. Markets predicted 54.0 last month.

Key Points:

Job creation edges up to seven-month high.

Higher fuel prices lead to sharp rise in input costs.

Chris Williamson, Chief Business Economist at IHS Markit, which compiles the survey:

“The service sector continued to report solid steady business growth in September which, alongside news of sustained expansions in both manufacturing and construction, suggests the UK economy expanded by just under 0.4% in the third quarter.”

“The data therefore add to signs that the economy has enjoyed robust growth since the rocky start to the year when extreme weather disrupted business.”