UK November flash companies PMI 50.zero vs 52.zero anticipated

• Companies PMI 50.zero vs 52.zero anticipated and 52.zero prior.
• Manufacturing PMI 48.6 vs 50.zero anticipated and 49.9 prior.
• Composite PMI 49.9 vs 51.eight anticipated and 51.eight prior.

Key Findings:

• Flash UK PMI Composite Output Index(1)
  : 49.9 (Oct: 51.eight).
  13-month low.
• Flash UK Companies PMI Enterprise Exercise Index (2) : 50.zero
  (Oct: 52.zero). 13-month low.
• Flash UK Manufacturing Output Index (three) : 49.three (Oct: 50.three).
  9-month low.
• Flash UK Manufacturing PMI (four) : 48.6 (Oct: 49.9). 9-month
  low.

Remark:

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

“The primary survey on the well being of the economic system after the
Finances makes for gloomy studying. Companies have
reported falling output for the primary time in simply over a
12 months whereas employment has now been reduce for 2
consecutive months. Though solely marginal, the
downturns in output and hiring characterize marked
contrasts to the strong progress charges seen again within the
summer time and are accompanied by deepening concern
about prospects for the 12 months forward.

Enterprise optimism has slumped sharply because the
Basic Election, dropping additional in November to hit the
lowest since late 2022. Corporations are giving a transparent
‘thumbs down’ to the insurance policies introduced within the Finances,
particularly the deliberate enhance in employers’ Nationwide
Insurance coverage contributions.

The November PMI is indicative of the economic system slipping
right into a modest decline, with GDP dropping at a zero.1%
quarterly fee, however the lack of confidence hints at worse
to come back – together with additional job losses –except sentiment
revives.

Encouragingly, inflation pressures have moderated
additional, with promoting costs rising on the slowest fee seen
this aspect of the pandemic. Nevertheless, still-elevated charges
of wage-related value and value progress are being
recorded within the service sector, probably limiting scope
for fee cuts among the many extra hawkish policymakers.”

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



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