The UK service sector growth slowed in November, with the business activity index falling to 51.3 points. New orders declined, reflecting subdued business and consumer confidence. Export sales softened, workforce numbers decreased, and fears about employment costs impacted staff hiring. Despite challenges, service providers remain optimistic about future growth prospects.

The composite PMI, combining service and manufacturing sectors, fell to 51.2 points in November. The manufacturing PMI rose to a 14-month high of 50.2 points, indicating growth. Business challenges included fragile client confidence, policy uncertainty, and subdued investment spending. Price competition and input cost inflation affected margins, while prices charged increased at a slower pace.

S&P Global compiled the services PMI from responses of around 650 UK service sector companies. The survey data was collected between Nov. 12 and 26. The construction PMI reading for the UK is expected to follow on Thursday. Morningstar’s editorial policies were mentioned at the end of the article.

Read more at Morningstar: UK Service Sector Growth Slows in November Amid Budget Uncertainty