The U.K. service sector growth strengthened for the first time in four months in October, survey results from Markit showed Wednesday.
The Chartered Institute of Procurement & Supply/Markit services Purchasing Managers’ Index rose more-than-expected to 54.9 in October from 53.3 in September. It was forecast to rise to 54.5.
The reading signaled an extension of the current sequence of output growth to 34 months.
Nonetheless, the report said the pace of expansion in output was still the second weakest since May 2013, and new business growth failed to accelerate from September’s 29-month low.
Further, the 12-month outlook for activity was the weakest in two-and-a-half years.
Employment increased in October, continuing the trend shown since January 2013. The rate of job creation strengthened to a five-month high.
Overall cost pressures in the service sector economy remained relatively subdued in October, the survey showed.
“The three surveys collectively indicated that the rate of economic growth rebounded in October from the two-and-a-half year low seen at the end of the third quarter,” Chris Williamson, chief economist at Markit, said.
The survey data point to GDP rising at a quarterly rate of 0.6 percent at the start of the fourth quarter.
The material has been provided by InstaForex Company – www.instaforex.com