- Services PMI 51.4 vs 51.0 expected and 50.8 previously.
- Manufacturing PMI 47.3 vs 48.2 expected and 48.0 previously.
- Composite PMI 50.5 vs 50.7 expected and 50.5 previously.
Main results:
- Flash UK PMI comparative manufacturing index (1): 50.5 (Nov: 50.5). No change.
- Flash UK Services PMI Business Activity Index (2): 51.4 (November: 50.4). 2-month high.
- UK Flash Manufacturing Production Index (3): 45.7 (November: 48.3). 11 months low.
- Flash UK Manufacturing PMI (4): 47.3 (November: 48.0). 11-month low.
Opinion:
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:
Businesses are reporting a tripling of grim news as 2024 draws to a close, with economic growth stalling, employment shrinking and inflation on the rise.
Economic growth momentum has been lost from the strong expansion seen earlier this year, as businesses and households have reacted negatively to the rhetoric and policies of the new Labor government. Business confidence has fallen to a two-year low as companies gauge a tougher outlook for sales alongside rising costs, particularly for workers as a result of changes announced in the Budget. The survey's price benchmarks indicate that inflation is turning higher again.
Firms are dealing with the rise in National Insurance contributions and new rules on workers with a particular pullback in hiring, causing employment to fall in December at the fastest rate since the 2009 global financial crisis. if the pandemic is unleashed.
While December's PMI is an indication of the economy largely stalling in the fourth quarter, a loss of confidence and an increase in job losses portend worse to come as we head into the new year. Policymakers at the Bank of England may be wary of cutting interest rates, however, as inflation continues to rise, further adding to the risks of a recession in 2025.”
UK Composite PMI
