Proactive Investors - October saw Britain's service sector grow at its slowest pace for 11 months, while employment across the industry also fell for the first time this year.
S&P Global’s services purchasing managers index (PMI) fell to 52.0 last month from 52.4 in September, reflecting the slowest uptick in output levels since November 2023.
Heightened uncertainty ahead of last week’s Budget was said to have delayed spending decisions, while some firms cited growing geopolitical tensions, S&P noted.
“The wait for clarity on government policy ahead of the Autumn Budget was widely reported to have weighed,” S&P economics director Tim Moore said.
“Broader geopolitical concerns and forthcoming US elections also added to a sense of wait-and-see on business investment decisions in October.”
S&P also reported staffing numbers across the sector fell for the first time since December 2023, while higher salaries pushed up input costs at the fastest pace in three months.
Export sales bucked the wider slowdown though, growing at the fastest rate since March 2023, driven in part by strong demand across the European Union.