UK Services Sector Sees Slower Downturn Than Expected in September

British services companies saw a less severe downturn in September than expected, partly due to lower inflation and the Bank of England's decision to leave interest rates unchanged.

The final UK Services PMI reading fell to 49.3 in September, an 8-month low but better than the preliminary "flash" estimate of 47.2.

Some companies are becoming more optimistic about cooling price pressures and consumer demand.

The employment gauge fell to its lowest since January 2021, as some firms did not replace departing staff amid strong wage growth.

Cost pressures and selling price gauges eased to their lowest since April 2021.