UK services PMI unexpectedly rebounds from 11-month lows in September

The services sector activity in the UK economy reversed course and staged a solid rebound from eleven-month troughs, surprising markets to the upside in the month of September, a fresh report from Markit Economics showed on Wednesday.

The services PMI bounced to 53.6 in September versus a 53.2 reading booked in August. Markets predicted an expansion to 53.2 last.

Key Points:

Sustained rise in service sector output during September

New business growth eases to 13-month low

Input cost pressures intensify

Chris Williamson, Chief Economist at Markit, noted: “The services sector saw another month of modest growth, running in the middle ground between the robust expansion seen in manufacturing and the contraction recorded in construction. The three PMI surveys put the economy on course for another subdued 0.3% expansion in the third quarter, but the fourth quarter could see even slower growth.”