Service sector performance declined again last month, due to higher borrowing costs and depressed economic conditions in the UK and Europe, but the data is not as bad as predicted.
The S&P Global/CIPS UK Services PMI Business Activity index fell from 49.5 in August, to 49.3 in September, its lowest since January 2023, and below the 50 threshold that marks neutral growth for the second month running. However, this was a significant upgrade from the earlier "flash" estimate of 47.2 and beat analysts' expectations. UK recession 'can still be avoided' as GDP grows 0.2% in Q2 Customers showed subdued demand and kept tighter reins on their non-essential spending, creating a "sustained downturn" in UK service sector output, the S&P survey found. Job cutbacks were...
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