UK Nov services PMI surprises to the upside, hits 10-month high

The services sector activity in the UK economy showed an unexpected improvement and surprised markets to the upside in the month of November, a fresh report from Markit Economics showed on Monday. The rebound marked the highest levels in ten-months. 

The services PMI accelerated its pace of expansion to 55.2 in Nov versus a 54.5 reading booked in Oct. Markets predicted a drop to 54.2 in Nov.

Key Points:

Growth accelerates to ten-month high

Business sentiment weakest since July

Input price inflation remains sharp, but eases for first time since May

Chris Williamson, Chief Economist at Markit, noted: “The further upturn in the vast services sector shows that the pace of UK economic growth remains resiliently robust in the fourth quarter, despite ongoing uncertainty caused by Brexit.”

“The three PMI surveys collectively indicate that the economy will grow by 0.5% in the fourth quarter.”