UK business growth hits five-month low amid budget uncertainty and weak demand – as it happened

The financial district of the City of London. Photograph: Neil Hall/EPA

3.13pm BST

Closing post

No US jobs report means an earlier Friday finish!

A quick recap:

• Growth in the UK service sector has slowed to a five-month low, hit by budget uncertainty and weak demand from overseas, slowing the wider economy.

• Growth also slowed slightly in the US services sector this month

• The oil price is on track for its biggest weekly drop in over three months, as traders anticipate an output increase from the Opec+ group this weekend.

• Prices rose today, though, after a fire broke out earlier today at Chevron’s El Segundo refinery in Los Angeles.

• The global banking industry’s net zero target-setting group has announced it will shut down immediately.

• Investors were deprived of enjoying the latest US jobs report by the government shutdown, which is preventing new economic data being released

• The boss of pub chain Wetherspoon’s has pledged to keep price rises to a minimum

Updated at 3.21pm BST

3.07pm BST

US service sector growth softens a little

Just in: growth in the US services sector slowed last month, but remained rather faster than in the UK.

Data firm S&P Global’s latest US services PMI report shows that business activity expanded again last month, but at a weaker pace.

The report has found:

• Business activity growth softens, while selling prices rise at weakest rate in five month

• Softer increase in demand also recorded

• Limited rise in hiring but confidence in business outlook improves

• Tariffs continue to drive operating expenses higher

This pulled the S&P Global US services PMI business activity index down to 54.2 in September, down from 54.5 in August, but still in growth territory (50 points = stagnation).

Chris Williamson, chief business economist at S&P Global Market Intelligence, says:

“Service sector growth softened slightly in September but remained strong enough to round off an impressive performance over the third quarter a whole.

Combined with sustained growth in the manufacturing sector, the expansion of service sector activity is indicative of robust third quarter annualized GDP growth of around 2.5%.

Growth is being fueled principally by rising financial services and tech sector activity, though we are also seeing more signs of improving demand for consumer-facing services such as leisure and recreation, likely linked in part to lower interest rates. Lower borrowing costs have also fed through to a broadbased improvement in business optimism about the outlook for the next 12 months.