UK October Final Services Slump at Fastest Pace Since 2021

A private survey on Thursday highlighted the difficult days ahead for the UK’s economy after services companies last month slump at the fastest pace since early 2021.

S&P Global’s final Services Purchasing Managers’ Index (PMI) for the United Kingdom dropped to 48.8 in October, well below the 50.0 expansion barrier at which it had been sitting in September.

Even though this was an improvement over the first “flash” reading of 47.5, it still was the largest drop in business activity since the beginning of 2021, when COVID-19 lockdowns hampered the economy.

The PMI was aligned with other leading indicators of the British economy that signal a worsening slowdown, which is expected to cause concern among Bank of England officials that will decide whether to drastically hike interest rates later today (Nov. 3).