UK Sept services PMI a tad weaker, but beats estimates

The services sector activity in the UK economy deteriorated less-than expected last month, although stalled the rebound seen in August, a fresh report from Markit Economics showed on Tuesday. The rebound was seen in August was the strongest on record. 

The services PMI slowed its pace of expansion to 52.6 in Sept versus a 52.9 reading booked in August, continuing its recovery from the Brexit-vote shocker. Markets predicted a drop to 52.0 in Sept.

Chris Williamson, Chief Economist at Markit, noted: “The survey results suggest that the economy has regained modest growth momentum since the EU referendum, with further service sector expansion accompanied by a return to growth in construction and an especially strong revival of manufacturing.”

“Across the three sectors, the pace of economic growth signalled was the strongest since January, fuelling greater job creation as companies shrugged off short-term Brexit worries and enjoyed the benefits of a weaker currency.”