Services sector up – but tough times ahead

first_imgWednesday 3 November 2010 6:26 am Services sector up – but tough times ahead Activity in the services sector unexpectedly gathered pace in October – but forecast for the rest of the year are weakening.The figures are likely to support expectations that the Bank of England will vote not to inject more stimulus into the economy this week but leave that option open further down the line if the economy worsens.The headline business activity index in the Markit/CIPS PMI index rose to 53.2 last month from 52.8 in September, the highest reading since June and confounding forecasts for a dip to 52.5.The improvement was led by a rise in new business, although the expectations index fell a full point and the employment index slipped back below the 50-level that separates expansion from contraction as firms braced for tough conditions ahead.“On both output and new orders measures, rates of expansion remain soft compared to long-run averages, as companies continue to digest the true effects on the economy of the coalition government’s Comprehensive Spending Review,” said Paul Smith, senior economist at Markit.“The latest data therefore suggest that the sector is set to make a below-par contribution to GDP in the coming months.”Nonetheless, Bank policymakers are also likely to be concerned by news of growing inflation pressures in the services sector, with firms ramping up their prices at the fastest pace in two years in response to increases in energy and wage costs.Wednesday’s PMI data, which covers firms that make up around 40 per cent of GDP, came after an unexpectedly robust survey of manufacturing activity and surprisingly weak construction PMI data this week. On balance, the figures suggest Britain’s economy made a solid start to the final quarter of this year.However, the survey also showed that companies remain cautious about the outlook and want to see how the 80 billion pounds of spending cuts laid out by the government last month will affect people’s spending decisions.“A number of respondents reported the deferral of client spending, reflecting continued uncertainty over the impact of government spending cuts on the economy,” Markit said.“Such concerns again dominated service providers’ expectations, with business confidence remaining historically subdued.” whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStorymoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteReporter CenterBrenda Lee: What Is She Doing Now At 76 Years of Age?Reporter Centerthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comBeach RaiderSee The Woman Bradley Walsh Is Dating At 61Beach Raider Show Comments ▼ John Dunne whatsapp Share Tags: NULLlast_img read more

Oil price dips from its 27 month peak after sell-off

first_img Show Comments ▼ Oil price dips from its 27 month peak after sell-off Share OIL prices fell from a 27-month high yesterday as the commodities sector saw a sharp sell-off.Traders said the abrupt selling across energy, metal and agricultural markets reflected a correction to the rally that had capped 2010, rather than a sudden reversal of the optimism that made commodities the top asset class last year. Trading volume recovered to its highest level since mid-December.Additional pressure came from a rebound in the dollar, after news of an improving US economic outlook.In London, ICE Brent crude for February delivery fell $1.93 to $92.91 a barrel, well off an early $95.74 peak.US crude oil for February delivery slid from an intraday peak of $92.07 a barrel to as low as $88.72 – the biggest one-day fall since November. Traders will be turning today to an update on US oil and fuel inventory levels from the US Department of Energy. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definition More From Our Partners Fans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKansas coach fired for using N-word toward Black playerthegrio.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgLA news reporter doesn’t seem to recognize actor Mark Currythegrio.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgPorsha Williams engaged to ex-husband of ‘RHOA’ co-star Falynn Guobadiathegrio.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comcenter_img whatsapp Tuesday 4 January 2011 7:23 pm KCS-content whatsapp Tags: NULLlast_img read more