JP Morgan: Service sectors slip in September
The flash purchasing managers’ index (PMI) for September indicates that the pace of recovery in the UK services sector is slowing
In the eurozone, where Covid-19 cases started rising again sooner than in the UK, service sector activity appears to already be contracting again. It seems apparent that higher Covid-19 infections will impede the recovery of the services sector and suggests a potentially difficult road ahead. The recent restrictions announced by the UK government aim to limit the spread of the virus while minimising the cost to the economy, but this is a difficult balancing act to strike. If infections continue to rise, more restrictive measures could be required. What seems clear is that a return to normality rests increasingly on hopes of a vaccine.