The UK composite PMI rose to 53.1 in October, surpassing market expectations and marking the strongest growth rate since February. This expansion ended a two-year downturn in private sector employment as improving demand led companies to hire additional workers for the first time since September. In contrast, the Eurozone's composite activity declined during the same period, missing expectations. Persistent price pressures in the UK have now made a Bank of England interest rate hike in November a near certainty.
Services and manufacturing growth picked up and companies resumed hiring, while input costs rose; markets are watching the Bank of England’s November 5 decision after pricing in a rate increase.
Read the full storyThe composite index fell from 52.5 in August, while annual inflation rose to 3.5% in September, as markets await the UK budget announcement.
UK services and manufacturing activity accelerated, while Eurozone activity remained in expansion territory; the euro fell against sterling to a 17-month low.