Oil hits five-month high as global stocks wobble on AI fears; retail sales in Great Britain fall as shoppers cut back - business live

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Some good news amid the doom and gloom this morning – UK business activity growth has accelerated to its fastest since February, helped by rebound in new orders, according to a survey published this morning.

The preliminary S&P Global UK composite purchasing managers’ index (PMI) rose to 53.1 in October, higher than forecast and up from 52.0 in September.

There are reports of paused spending due to a lack of clarity on domestic economic policy in the run up to the budget, meaning the promising economic picture from the latest PMIs should provide an encouraging base for further robust economic growth through the winter months, barring any adverse surprises to businesses in the tax and spending review.

Geopolitics, and notably the potential for conflicts in the Middle East and Ukraine to add to energy market volatility, are, however, clearly still unsettling many businesses, and cost of living concerns and broader fiscal worries are being compounded by the shift to higher borrowing costs.