Britain's October services PMI up to 8-month high

Britain's services sector expanded at its fastest pace since February in October, as stronger demand and rising new orders boosted business activity, according to data released by S and P Global on Wednesday.

The seasonally adjusted S and P Global UK Services PMI Business Activity Index rose to 52.8 in October, from 52.1 in September, marking its highest reading since February. However, the latest figure remained below the long-run average of 54.2, the survey showed.

Service providers largely attributed the increase in business activity to improving customer demand and growing order books. Some reported stronger sales driven by investment in artificial intelligence, while others pointed to easing risk aversion among clients and more favourable economic conditions.

Total new business increased for a fourth consecutive month in October, reaching its fastest pace since January, largely on the back of stronger domestic demand. Employment also grew for the first time in just over two years, although job creation remained marginal as companies sought to contain costs and improve operational efficiency, according to S&P Global.

October data highlighted a combination of faster output growth and stronger price pressures across the UK services economy, mirroring the trends in the manufacturing sector, said Tim Moore, economics director at S and P Global Market Intelligence.

These signals underscore the near-certainty of a Bank of England (BoE) rate hike in November and collectively raise the likelihood of further BoE policy tightening into 2027, he added.

Britain's October services PMI up to 8-month high

The European Commission on Wednesday presented accession roadmaps for Ukraine and three other leading European Union (EU) membership candidates, urging Kyiv to accelerate reforms to meet its goal of concluding negotiations by the end of 2028.

Adopting its annual enlargement package, the EU executive outlined milestones for Montenegro, Albania, Moldova and Ukraine, while stressing that progress toward membership depends on reforms.

The report showed that Montenegro has made progress in its judicial reform, the rule of law and institutional adjustments. It is expected to conclude EU accession negotiations in the foreseeable future.

However, concluding the negotiations would not mean immediate accession. The accession treaty would still need to be ratified through relevant procedures in both EU member states and the candidate country, so the final timeline remains uncertain.

Meanwhile, the commission believed that the ongoing conflicts with Russia has given Ukraine’s accession to the EU more significant political and security implications. It has recognized Ukraine’s progress in public administration, economic competitiveness and energy, while noting that the country still needs to accelerate judicial reform, strengthen anti-corruption mechanisms, and uphold the rule of law.

Th goal is to close accession negotiations by the end of 2028. However, that does not mean Ukraine will join the EU by then.

EU sets out accession roadmaps, urges Ukraine to accelerate reforms