"The PMI surveys and other available economic data are signalling GDP growth of 0.8pc in the third quarter, down from 0.9pc in the three months to June but still robust by historical standards and signalling a continuation of the UK's strong economic growth spell"
- Chris Williamson, chief economist at Markit
The British Pound slid to the lowest level in ten days versus the Euro and a fresh three-week low against the Greenback as data showed activity growth in the U.K. services sector declined more than expected in September. The Euro rose to 78.6 pence following the data release, the highest since September 23, while the Sterling lost versus the Dollar to trade at 1.6080.
The PMI index for Britain's services sector slid to a three-month low, the latest sign that Britain's economy is losing some of its recent pace. Markit said the index slipped to 58.7 in September from 60.5 a month earlier. Nevertheless, the gauge remains above the 50-mark threshold, which separates contraction from expansion. The slowdown in services follows a dip in manufacturing activity in September as a result of flagging demand for British goods in the neighbouring Euro zone. The data suggest the pace of economic growth slowed slightly in the third quarter to 0.8% compared with 0.9% in the April–June period. The Bank of England projects that Britain's economy will grow by 3.5% this year, but most of its policymakers have said they are in no hurry to hike interest rates from their record low at 0.5%, referring to low inflation, high unemployment as well as weak wage growth.
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