U.K. services PMI showed a more than forecast improvement in October but the dominant sector is still suffering amid the undergoing weak confidence and political uncertainty.
Services sector growth rose from a six-month low of 49.5 recorded in September to 50.0, the key point separating expansion from contraction, compared to analysts’ projection of 49.6.
The rate of contraction in the new business in the latest period was the fastest since April, but modest overall. Companies continued to link lower new work to uncertainty surrounding Brexit,” Markit’s report said.
“Uncertainty around Brexit also undermined international demand for UK-based services. New export business fell at a rate unchanged from September’s near-record pace,” the report revealed.
In October, the composite index, which includes the three major services, manufacturing and construction sectors, remained in contraction at 49.5 from 48.8 in September. That may indicate the British economy shrank by 0.1 percent in the quarter through October.
As of 09:50 GMT, the pound inched up against the U.S. dollar at $1.2889
after touching a high of 1.2903 and a low of 1.2875.