GBP
Growth in the UK service sector slowed further in September to its lowest rate
in nearly two and a half years, a survey has indicated.

The latest Markit  service sector purchasing managers index (PMI)
fell to 53.3 last month from 55.6 in August.
Markit said that its survey data indicated that UK GDP growth slowed to 0.5% in
the third quarter of the year, and is entering the fourth quarter at a pace of

GBP
Growth in the UK service sector slowed further in September to its lowest rate
in nearly two and a half years, a survey has indicated.

The latest Markit  service sector purchasing managers index (PMI)
fell to 53.3 last month from 55.6 in August.
Markit said that its survey data indicated that UK GDP growth slowed to 0.5% in
the third quarter of the year, and is entering the fourth quarter at a pace of
0.3%. This compares with growth of 0.7% in the second quarter of the year.

Chris Williamson, chief economist at Markit, said: “Weakness is spreading
from the struggling manufacturing sector, hitting transport and other
industrial-related services in particular.

EUR
Europe’s economic recovery is showing dangerous signs of falling flat after
another disappointing set of data from the single currency. September’s
combined Purchasing Manager’s Index (PMI) of the services and manufacturing
sector fell to 53.6, from 54.3 in August. This suggests momentum has petered
out after a spike in activity over the summer. 

The weak numbers all but guarantee the European Central Bank will be pushed
into further stimulus measures, ramping up its €1 trillion quantitative easing
programme. 
Economists suggest an announcement on more QE could be due at the end of the
year.

September’s numbers suggest growth remained stuck at 0.4pc in the third quarter
of the year, unchanged from the same period last year when the ECB had not yet
launched QE.

USD
The ISM non-manufacturing activity index in September fell to 56.9 compared to
the estimated drop to 57.5 from August’s 59. The pace of growth in service
industries cooled from the best reading in a decade, a sign that weak wages may
be pushing demand down amid signs of a slowdown in the global economy. 

Services PMI figures released from the US showed that the sector is still
robust. The index came in at 55.1 for September, economists had expected a
reading of 55.6. The report showed that hiring remained strong, although it is
lower year on year. Business activity and incoming new work also rose at slower
rates.

Key Announcements
13:30 – USD – US Trade Balance expected to fall to -$45.5bn from -$41.86bn
18:00 – EUR – Mario Draghi speech