Whilst this data was welcomed, Markit did state that the pace of improvement was still “relatively subdued”.
The PMI went on to say that within the sector there was strong jobs growth, as it hit a five-month high.
This good news follows similar bullish results, released recently by PMI, from both the ‘manufacturing’ and ‘construction’ sectors.
Chris Williamson, the Chief Economist of Markit, was reported as saying: “Such an improvement, together with the revival in hiring signalled by the three surveys... may coax more policymakers into (voting to raise) interest rates before the end of the year.”
However, he reportedly went on to add: “Dovish policymakers will note the ongoing lack of inflationary pressures in October, suggesting that there is no need to rush into raising rates.”
The Government itself will be very pleased to see more business sectors seeing improved performance, as the Chancellor of the Exchequer, George Osborne, has stated that he is committed to seeing a far more balanced economy evolving across the country, with less reliance on any one sector to drive GDP growth.
Editor’s note: The future direction and timing of interest rates remains a contentious subject, given the Governor of the Bank of England, Mark Carney’s recent comments on the subject. See ‘The Bank of England’s inflation report’ article.
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