- Final Services PMI 52.4 vs. 52.8 expected and 53.7 prior.
- Final Composite PMI 52.6 vs. 52.9 expected and 53.8 prior.
Key findings:
- Business activity growth eases to three-month low
in September. - Robust order books underpin positive business
expectations for the year ahead. - Prices charged inflation slows for third month in a
row.
Comment:
Tim Moore, Economics Director at S&P Global Market
Intelligence, said:
“The September PMI surveys suggest that the UK
economy is still on a positive trajectory, with improving
order books accompanied by cooling inflationary
pressures. Most encouragingly, prices charged inflation in
the service sector, which acts as a barometer of domestic
inflationary pressures, edged down to its lowest since
February 2021.
UK service providers indicated a moderate expansion
of activity in September, fuelled by resilient business
and consumer spending. However, the post-election
rebound lost some momentum as output, new work and
employment all increased at the slowest pace for three
months.
Robust domestic demand has been recorded throughout
the third quarter of 2024, helping to offset a headwind
from lacklustre export sales. Survey respondents linked
rising volumes of total new work to renewed growth in the
UK economy and the impact of domestic political stability
on investment spending.
Some service sector firms commented on delayed
decision-making among clients due to business
uncertainty ahead of the Autumn Budget on 30th October.
However, the majority of survey respondents (56%) expect
a rise in business activity during the year ahead, while only
11% forecast a downturn.
The resulting index signalled a
slight improvement in overall business optimism since
August. Lower borrowing costs, easing price pressures
and more certainty regarding the monetary policy outlook
all helped to boost growth expectations in the service
sector.”
UK Composite PMI