Source: Sharecast
The S&P Global flash UK PMI composite output index came in at 51.1, up from 50.1 a month previously and the sixth consecutive month it has been above the neutral 50.0 mark. A print below 50.0 suggests contraction but one above it indicates growth.
It was also comfortably above forecasts for 50.6.
Driving the growth was a rebound in the under-pressure manufacturing sector.
The UK manufacturing PMI rose to 49.6 from 46.2 - a 12-month high and ahead of forecasts for 46.6 - while the output index moved into positive territory for the first time in over a year, rising to 51.2 from 45.7.
The services PMI business activity index also ticked higher, to 51.1 from 50.8.
Manufacturing respondents attributed the higher levels of output to restocking and a "tentative" turnaround in domestic demand, despite the impact of cyberattack on Jaguar Land Rover.
Firms in the automotive supply chain flagged ongoing challenging conditions following the attack, which led the car manufacturer - the UK’s biggest - to shutter production throughout September and into October.
Price pressures across the private sector economy, meanwhile, moderated to the lowest point since November 2024.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the survey "brings hope that September was a low point for the economy, from which business conditions are starting to improve".
He continued: "Output has picked up, with a particularly welcome return to growth for manufacturing for the first time in over year, accompanied by an upturn in demand for services, notably among consumers.
"However, the overall pace of growth signalled by the PMI remains consistent with only suggest GDP growth of around 0.1%. And while easing, jobs continue to be cut amid a backdrop of business confidence that remains subdued by historical standards."
TD Securities said: "Overall, this report is unlikely to sway the Monetary Policy Committee one way or the other, though it does bring some relief that the manufacturing sector is stabilising - though it is only a small sector of the UK economy."
The composite PMI was based on responses to surveys sent to panels of 650 manufacturers and 650 services companies. Data were collected between 9 and 22 October.
