The UK economic recovery has regained its pace in October that also pointed to supply shortages hampering manufacturing growth and cost inflation hitting a new high.
- The purchasing managers’ index posted by IHS Markit and the Chartered Institute of Procurement and Supply expanded to a 3-month high of 56.8 in October, up from 54.9 in the last month.
- Chris Williamson, the chief business economist at IHS Markit, stated that the UK economy “picked up speed again” in October.
- The pace of job creation across was in August’s record high, even though survey respondents had challenges finding suitable candidates to fill vacancies.
- Higher wages and deteriorating supply shortages contributed to a rapid increase in input cost inflation.
- The PMI increase was attributable to the services sector, which accounts for nearly 80% of the economy, whereby the index grew to a 3-month high of 58.
Companies reported bullish business and consumer spending due to the easing of pandemic restrictions. But, Williamson cautioned that growth in services “looks prone to a plunge.
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Source: IHS Markit
