Mubasher: The UK’s services sector registered another growth in business activity in October, however, the rate of expansion was seen as the weakest in almost eight months or since March.

The seasonally adjusted IHS Markit/CIPS UK Services PMI® Business Activity Index fell to 52.2 in October from 53.9 in September, the purchasing managers’ index (PMI) report, issued by IHS Markit, showed.

It added that the headline index has remained above the 50.0 no-change value for the past 27 months, noting that the latest reading was the second-lowest since July 2016.

Survey respondents said that growing economic uncertainty and a soft patch for new work had held back business activity growth, IHS Markit said.

Several companies highlighted that uncertainty arising from Brexit talks added to concerns over the global economic outlook had weighed on demand for business services. Moreover, some survey respondents said that consumer spending was “subdued” in October, while consumer-focused sectors such as hotels, restaurants and leisure reported the weakest performance.

“The loss of momentum largely reflected more cautious spending patterns among clients, as highlighted by the weakest upturn in new work since July 2016,” the report released on Monday explained.

On the other hand, a rise in fuel bills and a similar increase in salaries contributed to the “fastest rise in average cost burdens since June”, IHS Markit indicated, adding that operating margins continued to suffer intense pressures in October.

This came despite a rate of price-charged inflation rising slightly last month from September’s 15-month low.

By 12:01 GMT, GBP/USD grew 0.25% to $1.3002, while the EUR/GBP retreated by 0.39% to GBP 0.8746.