UK PMI Manufacturing PMI slipped from 48.0 to 47.3, an 11-month low. Services PMI improved from 50.4 to 51.4. PMI Composite held steady at 50.5, signaling stagnation in overall economic activity.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, described a “triple whammy” facing businesses: stalled growth, declining employment, and renewed inflationary pressures.
While the PMI suggests that the economy remained broadly stagnant in Q4, the outlook for 2025 appears increasingly uncertain. Weak confidence, labor market retrenchment, and inflation risks could weigh heavily on economic activity.
Williamson said BoE faces the difficult task of balancing support for growth against the need to maintain inflation control, suggesting a cautious approach to monetary easing in the coming months.
