UK Private Sector Growth Softens

(RTTNews) - The UK private sector activity reported a softer expansion in November, largely due to a loss of momentum in the service sector, flash survey results from S&P Global revealed on Friday.

The composite output index fell more-than-expected to 50.5 in November from 52.2 in October. The expected level was 51.8.

Nonetheless, a reading above 50.0 indicates expansion in the private sector.

The slowdown was underscored by a softer rise in service sector activity. Despite remaining in expansion mode for a seventh straight month, services firms recorded only a marginal upturn that was the weakest in this sequence.

The services PMI hit a seven-month low of 50.5, down from 52.3 in the previous month. The score was forecast to drop to 51.9.

Meanwhile, the flash factory PMI declined less-than-expected to 50.2 from 49.7 in the previous month. The reading was seen at 49.3.

"November's flash PMI surveys brought disappointing news on the UK economy," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

"The PMI data therefore suggest the policy debate will shift further away from inflation worries toward the need to support the struggling economy, hence adding to the chances of interest rates being cut in December," Williamson added.