UK Weak PMI Hints at Further Slowdown

Growth in the UK service sector slowed further in September to its lowest rate in nearly two and a half years, a survey has indicated.

The latest Markit/CIPS service sector purchasing managers index (PMI) fell to 53.3 last month from 55.6 in August.

Although above 50, indicating growth, it was the lowest figure since April 2013 as global uncertainty and weak UK manufacturing weighed on businesses.

Service sector growth in the third quarter slowed to a two-year low.

Markit said that its survey data indicated that UK GDP growth slowed to 0.5% in the third quarter of the year, and is entering the fourth quarter at a pace of 0.3%. This compares with growth of 0.7% in the second quarter of the year.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza