Just as everyone was cheering the UK’s emergence from a double-dip recession, here’s more grim UK purchasing manager’s index (PMI) data. In October, the service sector grew at its slowest rate since December 2010. New business growth also slowed during the month, while staff were cut for a second month running.
Markit economist Andrew Harker said:
The latest UK services PMI data provide a warning to those who saw the strong growth in GDP during Q3 as symbolizing the start of a strong and speedy economic recovery.
Over in Ireland, the news is significantly better. This is the second consecutive month of growth in new business, and the fastest rate of growth since 2007. Lots of new business is behind the rise, according to industry leaders surveyed. There was also a sharp rise in new export orders, while employment increased for the second month in a row at a solid pace.