UK services PMI revised to five-month low

(Sharecast News) - Growth across the UK services sector slowed much more sharply than initially thought in September, according to revised estimates from S&P Global on Friday. The service-sector purchasing managers' index came in at 50.8 last month, down from the 16-month high of 54.2 in August and lower than the flash reading of 51.9 released last week.

As a result, this was the weakest rate of growth - indicated by any figure above the neutral 50-point mark - since April.

"UK service providers experienced a disappointing end to the third quarter as weak consumer confidence, delays to business spending decisions and falling exports all weighed on demand," said Tim Moore, economics director at S&P Global Market Intelligence.

Slower increases in output and new orders were reported during the month, while job-cutting across the sector picked up pace - marking 12 straight months of falling employment levels.

September also saw another sharp increase in average cost burdens for services businesses, linked to higher wage bills, food prices, utility and technology costs.

"This summer's acceleration in output growth is now looking like a flash in the pan as elevated political and economic uncertainty has reasserted itself as a constraint on service sector performance," Moore said.

"Many survey respondents suggested that corporate clients had deferred spending decisions until after the Autumn Budget, while households were also hesitant about major purchases."