10/5/2021, 10:31 AM (Source: TeleTrader)
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UK service sector expands in September

The service sector activity in the United Kingdom was on the rise in September, according to an IHS Markit/CIPS release on Tuesday. The final Services Purchasing Managers' Index (PMI) stood at 55.4 in September, up from the preliminary figure of 54.6 and beating expectations. The Manufacturing PMI saw a slowdown from 54.1 in August to 52.7 in September, while the Composite PMI was up by just 0.1 to 54.9 in September.

"Relentless supply chain disruption put a cap on activity and orders in September, as new work dropped to its lowest expansion level for over 6 months. Domestic sales faltered and export orders were hit by Brexit restraints as the thrust of recovery in the last few months slowed again," said CIPS Director Duncan Brock. "The chokehold on supply chain deliveries also made food, fuel and logistics much more expensive, which was a factor in dampening business optimism for activity in the next 12 months. As prices charged rose at their fastest rate since 1996, it seems the floodgates are open for higher inflation to wash through the UK economy and firms fear the growth this month may be eroded further by higher costs and shortages as we move towards the festive period."

Baha Breaking News (BBN) / DJ