The UK private sector expanded more than expected in November, albeit the pace of expansion slowed marginally from October, the flash survey results from IHS Markit showed on Tuesday. <\/p>\n
The composite output index registered 57.7 in November, down fractionally from 57.8 in October. Economists had forecast the index to fall sharply to 54.1.<\/p>\n
A reading above 50.0 indicates expansion. Moreover, the score was well above the economists’ forecast of 54.1. <\/p>\n
Service sector growth outpaced the manufacturing recovery in November, although the latter saw its strongest expansion for three months. <\/p>\n
The services Purchasing Managers’ Index dropped to 58.6 in November from 59.1 in the previous month. The expected reading was 54.6. <\/p>\n
Similarly, the manufacturing PMI came in at 58.2 versus 57.8 a month ago. The score was forecast to fall to 56.3.<\/p>\n
“A combination of sustained buoyant business<\/span> growth, further job market gains and record inflationary pressures gives a green light for interest rates to rise in December,” Chris Williamson, chief business economist at IHS Markit, said. <\/p>\n New order intakes increased at the strongest pace since June, fueled by robust rises in business and consumer spending.<\/p>\n Strong customer demand and increased backlogs of work contributed to another marked rise in private sector employment. Nonetheless, the latest growth was the slowest since April.<\/p>\n On the price front, the survey showed that input price inflation increased at the steepest rate since the series began in January 1998. <\/p>\n Exceptionally strong cost pressures meant that prices charged by manufacturers increased at the steepest rate since the index began 20 years ago. However, service providers indicated a slight slowdown in output charge inflation to its lowest for three months. <\/p>\n