UK November flash services PMI 50.5 vs 49.5 expected

<ul><li>Prior 49.5</li><li>Manufacturing PMI 46.7 vs 45.0 expected</li><li>Prior 44.8</li><li>Composite PMI 50.1 vs 48.7 expected</li><li>Prior 48.7</li></ul><p>UK business activity shows a marginal growth in November, the first in three months, as both services and manufacturing sector activity picked up on the month. That's a welcome development for the economy in general, although there were renewed signs of inflation being more stubborn. S&amp;P Global notes that:</p><p><em>“The UK economy found its feet again in November as the
service sector arrested a three-month sequence of decline
and manufacturers began to report less severe cutbacks
to production schedules. Relief at the pause in interest rate
hikes and a clear slowdown in headline measures of
inflation are helping to support business activity, although
the latest survey data merely suggests broadly flat UK
GDP in the final quarter of 2023.
</em></p><p><em>“Prominently cited areas of strength were corporate
budgets for technology investment and general spending
on essential business services. Discretionary household
spending remained a weak link, as many private sector
businesses noted low consumer confidence and cost-of-living pressures. Meanwhile, a number of firms reported
falling demand due to construction sector cutbacks and
post-pandemic customer destocking was still a headwind
for the manufacturing sector.
</em></p><p><em>“The survey’s forward-looking indicators suggested that
recession risks will likely remain elevated into the New
Year, as new orders decreased for the fifth month running
amid ongoing reports of subdued sales opportunities. At
the same time, business activity expectations held close to
October’s recent low and remained notably soft in
comparison to the first half of 2023.
</em></p><p><em>“Finally, overall input cost pressures picked up for the first
time in four months. Service sector inflation was a key area
of concern as businesses once again reported the need to
pass on higher staff costs to customers. Measured overall,
prices charged by UK private sector firms increased at the
fastest pace since July, led by a robust and accelerated
rise among service providers.”</em></p><p><br></p>

This article was written by Justin Low at www.forexlive.com.