Key facts
- UK Composite PMI rose to 53.1 in October, highest since February.
- Manufacturers saw strongest output increase in over two years.
- Businesses expect rate hike from Bank of England on November 5.
British businesses are experiencing their strongest month for activity since February, with the preliminary S&P Global UK Composite Purchasing Managers' Index rising to 53.1 in October, surpassing economists' forecasts. This uptick, up from September's 52.0, is attributed to growing new orders and increased demand related to AI investments. Companies have also resumed hiring for the first time since a tax increase in former finance minister Rachel Reeves' 2024 budget, signaling a nascent recovery in the jobs market. Manufacturers reported their strongest output increase in over two years, while services firms saw an acceleration in new orders. Despite strong cost inflation, particularly among manufacturers, companies increased their own prices less sharply than in September. The Bank of England is widely expected to raise interest rates on November 5 due to persistent inflation concerns.