Spanish services sector pushed by new business in September

Spanish services sector pushed by new business in September

Spanish services sector pushed by new business in September

However, when put against the backdrop of a weaker sterling and accelerating growth elsewhere in the world, notably the Eurozone, recent United Kingdom economic data leaves much to be desired. Readings over 50 indicate growth and September's was the highest since February 2011.

- Earlier, the final Euro-Zone service-sector PMI hit 55.8, above the flash estimate of 55.6.

Markit's final composite PMI, which tracks the manufacturing and services sectors that account for more than two-thirds of the economy, rose to 57.7-its highest reading in nearly 6-1/2 years-from 55.8 in August.

"However, while optimism has slipped, the "hard" survey data on recent output, new orders and hiring trends remain solid".

At 3.45 am ET, IHS Markit is slated to release Italy's services PMI data.

The headline seasonally adjusted PMI was 53.6 in September, up from an 11-month low of 53.2 in August, but still lower that the index average of 54.3 in the second quarter.

September data revealed a continued upturn in business activity across the United Kingdom service sector, although the rate of expansion edged up only slightly since August and remained weaker than seen on average in the first half of the year.

Britain's economy initially withstood the shock of the June 2016 vote to leave the European Union. New business orders were also down, with house building being the only bright spot.

The UK is widely expected to increase rates later this year, with both the markets and economists looking for a quarter-point rise perhaps as early as the November 2 meeting of the central bank's monetary policy committee. With a subdued rate of expansion in September, UK services maintained a lower than long-term average performance this month'.

"September data painted an encouraging picture as the sector continued to recover from the disruptions caused by the introduction of the GST in July", Aashna Dodhia, economist at IHS Markit and the report's author wrote. However, despite having retreated by about 4.7% from August's 10-month highs due to sterling's BoE-led rally, the euro remains up 4% in the year to date against the British currency on the back of the diverging outlook for the two economies.

Related news

[an error occurred while processing the directive]