london skyline

United Kingdom PMI October 2019

United Kingdom: Services and manufacturing PMIs recover slightly in October

The IHS Markit/CIPS UK services Purchasing Managers’ Index (PMI) increased from 49.5 in September to 50.0 in October, reaching the threshold that separates expansion from contraction in activity. It should be noted that the services PMI does not cover certain subsectors such as retail, education and health, meaning the PMI does not reflect the services sector in its entirety—this likely explains in part why the service sector has continued to expand moderately according to GDP data, despite recent depressed PMI readings.

In October, new orders, exports and employment continued to decline, although the fall in employment was softer than in the prior month. Input price inflation eased, while output price inflation was soft amid intense competition.

The IHS Markit/CIPS manufacturing PMI ticked up from 48.3 in September to 49.6 in October, but remained below the 50-threshold, indicating a contraction in the sector. Output, new orders and employment declined further, although exports rebounded as EU customers front-loaded purchases ahead of a potential no-deal Brexit on 31 October. Brexit concerns also led to some stockpiling, albeit below the record rates observed in Q1. Input and output price pressures were moderate.

Regarding the service sector, Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, commented: “The sector’s main difficulties are largely of Brexit’s making and with another deadline comes more indecision and delay. […] Companies are waiting for a resolution by the UK Government to salvage the current situation so workflows can begin again at healthier levels.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest