- Markit
The UK service sector's business activity experienced a further decline at the end of the third quarter, and, hence, reached its lowest rate in almost two and a half years. The most recent services sector Purchasing Managers Index dropped from August's 55.6 points to 53.3 points in September. Even though the figure is above the threshold of 50 points, which implies growth, it was nevertheless the lowest number since April 2013. This trend could be caused by increasing uncertainty across the globe, along with weak British manufacturing activity.
Meanwhile, the survey also indicated that shoppers in the UK were believed to be more cautious and, therefore, reduced their expenditures on hotels and restaurants. The official data in the previous week demonstrated the services sector, which makes up 78% of the country's total economy, weakened again during the summer, just after it advanced in the second quarter from a slowdown witnessed in the beginning of 2015. The recent numbers may unsettle both Chancellor George Osborne, who is due to address the annual conference of his Conservative Party on Monday, and the Bank of England as its Monetary Policy Committee meets to discuss interest rates ahead in the week.
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