HomeLive CommentsUK PMI composite ticked down to 57.7, giving green light for BoE...

UK PMI composite ticked down to 57.7, giving green light for BoE rate hike

UK PMI Manufacturing rose to 58.2 in November, up from 57.8, above expectation of 56.7. PMI Services dropped to 58.6, down from 59.1, below expectation of 58.5. PMI Composite ticked down to 57.7, down from 57.8.

Chris Williamson, Chief Business Economist at IHS Markit, said: “A combination of sustained buoyant business growth, further job market gains and record inflationary pressures gives a green light for interest rates to rise in December… For policymakers concerned about the health of the labour market after the end of the furlough scheme, the buoyant jobs growth signalled should bring some reassuring comfort.

“A record increase in firms’ costs will meanwhile further stoke fears that inflation will soon breach 5%, with lingering near-record supply delays adding to indications that price pressures may show few signs of abating in the near-term. The relatively poor performance of manufacturing is likely to remain a concern for some time, however, as is the potential to see tighter growth-inhibiting COVID-19 restrictions applied amid high COVID-19 case numbers both at home and now also in continental Europe.

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