Analysts had on average expected an increase to 53.2 in October, according to a compilation of forecasts made by Bloomberg.
An index value above 50 indicates increased activity in the sector.
"The recovery in the service sector is slow and shows no clear signs of gaining momentum, despite interest rate cuts. Even though companies are more optimistic in their business plans, they choose to reduce the number of employees, risking continued high unemployment ahead", says Jörgen Kennemar, responsible for the analysis of the purchasing managers' index, according to a press release.
