UK October flash providers PMI 51.eight vs 52.four anticipated

• Providers PMI 51.eight vs 52.four anticipated and 52.four prior.
• Manufacturing PMI 50.three vs 51.four anticipated and 51.5 prior.
• Composite PMI 51.7 vs 52.6 anticipated and 52.6 prior.

Key Findings:

• Flash UK PMI Composite Output Index(1) at 51.7 (Sep:
  52.6). 11-month low.
• Flash UK Providers PMI Enterprise Exercise Index(2) at
  51.eight (Sep: 52.four). 11-month low.
• Flash UK Manufacturing Output Index(three) at 50.9
  (Sep: 53.6). 6-month low.
• Flash UK Manufacturing PMI(four) at 50.three (Sep: 51.5).
  6-month low.

Remark:

Commenting on the flash PMI knowledge, Chris Williamson,
Chief Enterprise Economist at S&P World Market
Intelligence mentioned:

“Enterprise exercise progress has slumped to its lowest for
almost a 12 months in October as gloomy authorities rhetoric
and uncertainty forward of the Finances has dampened
enterprise confidence and spending. Corporations await
readability on authorities coverage, with conflicts within the Center
East and Ukraine, in addition to the US elections, including to
the nervousness concerning the financial outlook.

The early PMI knowledge are indicative of the financial system rising
at a meagre zero.1% quarterly fee in October, reflecting a
broad-based slowing of enterprise exercise, spending and
demand throughout each manufacturing and providers.
Worryingly, the deterioration in enterprise confidence within the
outlook has additionally prompted corporations to scale back
headcounts for the primary time this 12 months.

Cleary, the insurance policies introduced within the Finances have the
potential to play a serious function in steering the route of the
financial system within the months forward.
Encouragingly, nonetheless, an extra cooling of enter value
inflation to the bottom for 4 years opens the door for the
Financial institution of England to take a extra aggressive stance in the direction of
decreasing rates of interest, ought to the present slowdown
grow to be extra entrenched.”

This text was written by Giuseppe Dellamotta at www.ubaidahsan.com.



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