UK PMI Manufacturing ticked up to 57.7 in October, from September’s 57.1, above expectation of 55.6. PMI Services rose to 58.0, up from 55.4, above expectation of 54.5. PMI Composite rose to 56.8, up from 54.9, highest in 3 months.

Chris Williamson, Chief Business Economist at IHS Markit, said: “The UK economy picked up speed again in October, but the expansion is looking increasingly dependent on the service sector, which in turn looks prone to a slowdown amid the recent rise in COVID-19 cases. Growth is also being accompanied by an unprecedented rise in inflationary pressures, which will inevitably feed through into higher consumer prices in coming months.

“The news comes at a time when the Bank of England is already leaning towards hiking interest rates to safeguard against inflationary expectations becoming entrenched. The record readings of the PMI survey’s price gauges will inevitably pour further fuel on these inflation worries and add to the case for higher interest rates.