Investing.com - Service sector activity in the U.K. expanded at a slower rate than expected in October, growing at the weakest pace in 22-months, industry data showed on Monday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index fell to 50.6 in October from a reading of 52.2 in September.
Analysts had expected the index to ease down to 52.0.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The data said growth of new business eased during the month, leading companies to deplete backlogs of work. Meanwhile, staffing levels were reduced for the second month running.
Commenting on the report, Andrew Harker, Economist at survey compilers Markit said, “The latest UK services PMI data provide a warning to those who saw the strong growth in GDP during Q3 as symbolizing the start of a strong and speedy economic recovery.”
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.23% to trade at 1.5988.
Meanwhile, European stock markets remained broadly lower. London’s FTSE 100 declined 0.6%, the EURO STOXX 50 fell 0.8%, France's CAC 40 slumped 0.8%, while Germany's DAX retreated 0.6%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index fell to 50.6 in October from a reading of 52.2 in September.
Analysts had expected the index to ease down to 52.0.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The data said growth of new business eased during the month, leading companies to deplete backlogs of work. Meanwhile, staffing levels were reduced for the second month running.
Commenting on the report, Andrew Harker, Economist at survey compilers Markit said, “The latest UK services PMI data provide a warning to those who saw the strong growth in GDP during Q3 as symbolizing the start of a strong and speedy economic recovery.”
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.23% to trade at 1.5988.
Meanwhile, European stock markets remained broadly lower. London’s FTSE 100 declined 0.6%, the EURO STOXX 50 fell 0.8%, France's CAC 40 slumped 0.8%, while Germany's DAX retreated 0.6%.