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ECONOMIST VIEWS: DO YOU EXPECT THE PMI TO SHOW STRONG GROWTH IN SERVICES IN NOVEMBER?

<strong>HOWARD ARCHER IHS GLOBAL INSIGHT<br /></strong>Stronger business and financial sector activity is lifting services demand and output. In addition, there are indications that consumer spending on services may have bottomed out. However, the survey evidence currently needs to be treated with caution.<br /><br /><strong>DAVID PAGE INVESTEC<br /></strong>We suspect that this month is likely to see a levelling off and forecast a reading of 57.2. What concerns us is that there is little acknowledgment of this in official estimates. Our interpretation of the PMI suggests quite a rebound in this sector in the fourth quarter.<br /><br /><strong>JONATHAN LOYNES CAPITAL ECONOMICS<br /></strong>The CIPS/Markit report on services looks set to point to a strong end of the year. Admittedly, the survey has been more upbeat than the official data but this does not alter the positive outlook. Needless to say, the recovery is still fragile &ndash; but the turnaround has been across the board.