United Kingdom: Business Activity Growth Picks Up to 8-Month High.

The UK private sector continued to expand in October, with the flash Composite PMI Output Index rising to 53.1 from 52 in September, exceeding market expectations of 51.8 and reaching an eight-month high. Growth was supported by the sharpest increase in new business since September 2024. Both manufacturing and services recorded stronger output growth, while manufacturing activity posted its strongest increase in just over two years. Improving demand also helped employment return to growth for the first time since September 2024, ending a two-year period of job cuts, although the increase in staffing remained marginal. However, inflationary pressures intensified, with input costs rising sharply and the overall pace of cost inflation reaching its highest level since June. Business confidence regarding the year ahead edged higher in October, but optimism remained below the survey’s long-term average.