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Services PMIs Point to Modest October Rebound in the UK, US and Canada

Surveys cite firmer domestic orders with employment still soft.

Overview

  • UK services PMI rose to 52.3 with the composite at 52.2, and business expectations reached their highest since October 2024 as growth broadened.
  • UK survey data showed input‑cost inflation at its weakest since November 2024 and the slowest rise in prices charged since June, while job shedding eased.
  • Canada’s services PMI edged back into expansion at 50.5 for the first time since last November, though new business and employment remained below 50 and confidence was sub‑par.
  • The ISM U.S. services PMI increased to 52.4, with new orders up to 56.2, while the employment index stayed in contraction at 48.2 and prices paid were elevated at 70.0.
  • Companies across reports highlighted policy headwinds including tariffs, weak export demand and a prolonged U.S. data blackout from the shutdown, which leave near‑term momentum fragile.