Core Insights - The S&P Global reported that the UK's October Composite Purchasing Managers' Index (PMI) preliminary value rose to 51.1, indicating a continued expansion and initial signs of recovery in business activity, although policy uncertainty ahead of the November government budget keeps businesses cautious [1] Group 1: PMI Data - The services PMI preliminary value increased to 51.1, a two-month high, up from 50.8 in September, indicating moderate expansion [1] - The manufacturing PMI preliminary value surged from 46.2 in September to 49.6, marking a 12-month high, although it remains below the growth threshold, the contraction is the shallowest in a year [1] Group 2: Economic Drivers - Inventory replenishment and a rebound in domestic demand are driving accelerated production in the UK manufacturing sector, with Jaguar Land Rover gradually resuming production after previous shutdowns due to cyberattacks, supporting the related supply chain [1] - The October PMI suggests that September may have been the economic low point, with the business environment gradually improving, although the recovery remains moderate [1] Group 3: Business Sentiment - Businesses are exhibiting a strong wait-and-see attitude towards the November UK government budget, with expectations that Chancellor Reeves will introduce tax increases to address the fiscal deficit, leading to caution in spending, investment, and hiring [1] - The construction sector remains subdued as it awaits clarity on policy, and manufacturing new orders continue to face pressure due to US tariffs, necessitating observation of the actual effects of budget policies post-implementation [1]