UK PMI Services was finalized at 48.7 in January, down from December’s 49.9, fastest contraction since January 2021. PMI Composite was finalized at 48.5, down from prior month’s 49.0, in contraction for the sixth straight months.
Tim Moore, Economics Director at S&P Global Market Intelligence:
“January data pointed to the weakest service sector performance for two years as cutbacks to business and consumer spending resulted in a fourth consecutively monthly reduction in output levels. The latest survey illustrates that the UK economy risks falling into recession as labour shortages, industrial disputes and higher interest rates take their toll on activity.
“However, the downturn in service sector output remained relatively shallow at the start of 2023. Encouragingly, new order volumes moved closer to stabilisation and export sales picked up in January, which contributed to a marginal upturn in overall employment numbers.”
