CIPS Points To Slowing Service Sector Growth In The UK

The Chartered Institute of Purchasing And Supply has published a report showing that UK service sector growth has slowed significantly – the weakest seen in 2 years in fact. The PMI services index fell to 50.6 from 52.2 in September – any number of 50 or more is indicative of growth.

The numbers are yet another indication that the general economic conditions within the UK remain challenging, despite the Olympics inspired GDP growth seen in Q3. The weak numbers have sparked suggestions from some analysts that the Bank Of England may now expand its Quantitative Easing program (currently at £375 billion) – however further QE would risk savage inflation at some point in the future.