Money Minute Tuesday 5 November: UK services sector heading for further contraction

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This morning in the UK, we get the latest data on the services sector. This represents a much larger segment of the UK economy than the manufacturing industry. In September, activity in the sector contracted, and it seems likely that this continued in October.

As economic research group Capital Economics points out, it’s worth noting that surveys have been overstating economic weakness in the UK recently. That’s probably due to the Brexit-shaped cloud of uncertainty hanging over everything. That said, there’s no doubt that activity across the board is slowing. Let’s hope that some sort of post-election resolution can re-invigorate the economy.
In the eurozone, we get the latest reading on producer price inflation across the region. It’s expected to come in broadly flat year on year.
Meanwhile, later on in the US we’ll get the latest reading on sentiment in the non-manufacturing sector. September’s reading was very poor, hitting a three-year low, but a rebound is expected for October.

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