S&P Global Market Intelligence: UK Service Growth and Price Pressures Raise Odds of Further Rate Hikes

According to Jin10, Tim Moore, economics director at S&P Global Market Intelligence, said October data showed faster growth in UK service-sector output and mounting price pressures, in line with trends in manufacturing. He said the signals made a Bank of England rate hike in November almost certain and increased the likelihood of further monetary tightening in 2027. Service providers reported that business activity growth reached its highest level since February and that new orders rebounded sharply. Moore said the UK economy showed greater resilience despite geopolitical tensions, high cost pressures and weak consumer confidence. Higher business volumes were mainly supported by improved potential sales opportunities, particularly those related to artificial intelligence investment spending. Input price inflation accelerated for a third consecutive month to its highest level since May. The latest sharp increase in average costs was mainly linked to higher fuel and transport costs, rising wages and higher energy prices.