The UK’s private sector contracted in October with optimism about growth prospects the lowest so far this year, figures showed today.
At 49.5 in October, the headline seasonally adjusted S&P Global/CIPS UK Services PMI Business Activity Index was up fractionally from 49.3 in September and above the earlier 'flash' reading of 49.2.
Firms typically cited cost-of-living pressures, high interest rates and weak consumer confidence as factors holding back customer demand.
Job shedding continued in October, reflecting lower new orders and uncertainty about the business outlook.
The degree of optimism among services companies regarding year-ahead growth prospects was the lowest in 2023 so far.
Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey, commented: "A shallow downturn in UK service sector activity persisted in October as businesses struggled to make headway against a backdrop of worsening domestic economic conditions and stretched household budgets.
"Forward-looking survey indicators suggested that service providers will continue to skirt with recession."