Activity in service sector in sharp fall
Activity inBr it ain' ss ervices sector slammed into reverse last month during England's second national lockdown, but the impact was less severe than first feared, according to new figures.
The closely-watched IHS Markit/cips services purchasing managers' index (PMI) showed a reading of 47.6 for November, down sharply on the 51.4 in October as non-essential shops, pubs and restaurants were forced to close their doors.
It marked the first contraction since June, with a reading below 50 signalling a decline in activity.
But the impact was not as bad as the initial 45.8 flash estimate given last month and April's record low of 13.4 seen during the spring lockdown.
The composite PMI for the wider private sector was also revised higher, while the figures showed a surge of optimism over the outlook among firms.
Some experts said the more resilient per formance amid the lockdown suggests there may be a smaller contraction in the fourth quarter of 2020.
The data revealed a composite reading of 49 in November against 52.1 in October, though this is almost two points higher than last month's 47.4 flash composite estimate.
The more resilient performance in the second lockdown and recent good news on Covid-19 vaccines saw optimism across the private sector reach its highest level since March 2015.
Tim Moore, economics director at survey compiler IHS Markit, said: "New lockdown measures and tighter pandemic restrictions unsurprisingly tipped UK private sector output back into decline during November.”