LONDON (dpa-AFX) - The UK private sector activity grew the most in eight months in October, supported by the sharpest rise in new work since September 2024, purchasing managers' survey data from S&P Global showed Friday.
The flash composite output index advanced unexpectedly to 53.1 from 52.0 in September. The score was forecast to drop to 51.8. The index remained above the neutral 50.0 mark for the fourth consecutive month.
Faster rates of output growth were recorded in both the manufacturing and service sectors, with the former posting its strongest upturn for just over two years.
The services Purchasing Managers' Index climbed to an eight-month high of 53.1 from 52.1 in the previous month. The score was expected to drop to 51.8.
At the same time, the factory PMI hit 52.8 in October, a five-month high, and up from 51.9 in September and the forecast of 51.8.
Greater demand meant that employment numbers returned to growth, which ended a two-year period of job cuts. There was another steep rise in input prices. The rate of cost inflation was the strongest since June. Meanwhile, prices charged by private sector firms increased at a slightly slower pace.
'Price pressures remain worryingly elevated, not only making a rate hike from the Bank of England at its upcoming policy meeting a near certainty but also likely shortening the odds of further rate hikes into 2027,' S&P Global Market Intelligence Chief Business Economist Chris Williamson said.
Business activity expectations for the year ahead edged up in October, but optimism levels remained softer than the long-run survey average.
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