UK private sector growth hits eight-month high as PMI tops 53
Britain's private sector expanded at its quickest pace since February, as the S&P Global Composite PMI reading for October climbed to 53.1, topping both September's 52 and the 51.8 consensus call. The figure carries weight for GBP/USD positioning.
Both underlying components also beat forecasts. Factory activity, measured by the Manufacturing PMI, edged up to 52.8 from 51.9, while the services gauge increased to 53.1 versus 52.1 previously recorded.
S&P Global Market Intelligence’s chief business economist, Chris Williamson, remarked that the British economy had built momentum heading into October, with preliminary survey figures pointing to the quickest expansion since February. He added that businesses began hiring again for the first time since the 2024 Autumn Budget had discouraged recruitment.
Even with the upside surprise in the UK Composite PMI October figures, sterling struggled to capitalize, with GBP/USD hovering close to 1.3380, slipping roughly 0.1% on the session.
Why it matters for markets: Upbeat PMI figures suggest the UK economy is gathering steam, a trend that could shift Bank of England rate expectations and ripple through GBP/USD and gilt yields. Renewed hiring also points to labour-market durability, a factor central bankers weigh closely when setting borrowing costs.
Source: FXStreet