UK Services Growth Eases In November

(RTTNews) - The UK service sector logged a slowdown in business activity amid weak demand conditions, final survey results from S&P Global showed on Wednesday.

The S&P Global Services Purchasing Managers' Index posted 51.3 in November, down from 52.3 in October. The flash score was 50.5.

British service providers revealed that the growth was hindered by subdued business and consumer confidence, along with uncertainty ahead of the budget, which had resulted in delayed investment decisions and cautious spending patterns.

New export business also decreased at the fastest pace in five months due to intense competition and challenging economic conditions in major global markets, in part reflecting geopolitical uncertainties and concerns among clients about US tariffs.

Companies reduced their workforce numbers at the fastest pace in nine months as reduced backlogs of work and worries about elevated employment costs once again acted as a brake on staff hiring.

Higher payroll costs are also cited as the key factor for raising operating costs in the services economy. Rising raw material prices also resulted in a sharp and accelerated pace in input price inflation. Meanwhile, selling price inflation eased markedly amid rising competition and weak sales pipelines.

Looking ahead, companies remain positive about overall growth prospects over the year ahead. Nonetheless, the degree of confidence eased since October due to concerns about the impact of weak UK economic prospects and cutbacks to business investment plans.

The composite output index rose to 51.2 in November from 52.2 in October, indicating only a marginal expansion of business activity in the British private sector.