UK and Japan Service Sectors Expand in October
S&P Global reports service sector growth in both the United Kingdom and Japan, signaling potential interest rate hikes in Britain and policy shifts in Japan.
The services sectors in the United Kingdom and Japan both expanded in October, according to data from S&P Global Market Intelligence. In Britain, the services sector grew at its fastest pace since February, with the PMI Business Activity Index rising to 52.8 from 52.1 in September. This growth was fueled by artificial intelligence investments, rising new orders, and stronger domestic demand.
Economic analysts suggest the UK data makes a Bank of England interest rate hike in November nearly certain. While new business reached a peak not seen since January, employment growth remained marginal as firms prioritized operational efficiency and cost containment.
In Japan, the service sector expanded for the fifth consecutive month, with the PMI rising to 51.7. New orders grew for the 28th straight month due to business development and domestic demand, though foreign demand remained weak. Despite a deceleration in input price inflation to an eight-month low, output prices have risen for over four years.
Japanese business confidence fell to its lowest level since March, pressured by an aging population and labor shortages. Employment growth in Japan slowed to its weakest pace in 14 months, and a slowdown in manufacturing output offset some of the gains in the services sector.
