- Chris Williamson, Chief economist at Markit
The UK's services sector, which accounts for more than 75% of the country's GDP, continued to grow in September after dropping sharply immediately after British public has voted to leave the European Union. The Final Markit/CIPS PMI services-sector index decreased to 52.6 in October from 52.9 noted during the previous month. The third-quarter reading showed the slowest pace since the fourth quarter of 2012 thus underlying concerns surrounding the outlook will continue as Brexit uncertainty continues. New business, in turn, rose at the fastest pace since February, although it was still below the longer-term average, with overseas client orders boosted by Sterling weakness. Meanwhile, the data comes after outstanding manufacturing and construction PMI readings earlier this week, signaling the economy may be regaining its momentum. Also, Prime Minister Theresa May has signaled she is going to start the formal exit procedure by the end of the first quarter of 2017, beginning a two-year negotiation period.
In the meantime, the GBP/USD is trading still above 1.2700 after dipping to fresh 31-year lows below this level early in Europe.
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