UK services PMI hits 10-month high in November

The UK services sector grew more than expected in November, according to the latest survey data from IHS Markit and CIPS.

The Markit/CIPS services purchasing managers’ business activity index rose to 55.2 from 54.4 the month before, beating expectations for a reading of 54.2 and signalling the fastest rate of expansion since January.

Growth of total business activity was supported by a further solid increase in new work. New business rose for the fourth successive month and at the second-fastest rate since January.

The pace of expansion eased slightly since October but was still in line with the long-run survey average. Meanwhile, the weak pound was reported to be a factor boosting international demand, while firms also reported marketing efforts and new products.

Chris Williamson, chief business economist at IHS Markit, said: “The further upturn in the vast services sector shows that the pace of UK economic growth remains resiliently robust in the fourth quarter, despite ongoing uncertainty caused by Brexit.

“The three PMI surveys collectively indicate that the economy will grow by 0.5% in the fourth quarter.”

The pound rose to $1.2735 after the data.