LONDON, Nov. 4 (Xinhua) -- Britain's services sector expanded at its fastest pace since February in October, as stronger demand and rising new orders boosted business activity, according to data released by S&P Global on Wednesday.
The seasonally adjusted S&P Global UK Services PMI Business Activity Index rose to 52.8 in October, from 52.1 in September, marking its highest reading since February. However, the latest figure remained below the long-run average of 54.2, the survey showed.
Service providers largely attributed the increase in business activity to improving customer demand and growing order books. Some reported stronger sales driven by investment in artificial intelligence, while others pointed to easing risk aversion among clients and more favourable economic conditions.
Total new business increased for a fourth consecutive month in October, reaching its fastest pace since January, largely on the back of stronger domestic demand. Employment also grew for the first time in just over two years, although job creation remained marginal as companies sought to contain costs and improve operational efficiency, according to S&P Global.
"October data highlighted a combination of faster output growth and stronger price pressures across the UK services economy, mirroring the trends in the manufacturing sector," said Tim Moore, economics director at S&P Global Market Intelligence.
"These signals underscore the near-certainty of a Bank of England (BoE) rate hike in November and collectively raise the likelihood of further BoE policy tightening into 2027," he added.
