HomeLive CommentsUK PMI composite edges higher to 50.9, but stagflation risks cloud economic...

UK PMI composite edges higher to 50.9, but stagflation risks cloud economic outlook

UK PMI Composite rose slightly from 50.4 to 50.9 in January, indicating marginal growth. Manufacturing PMI improved from 47.0 to 48.2, while services PMI ticked up from 51.1 to 51.2. Despite these increases, the overall outlook remains gloomy, with underlying concerns about economic weakness and inflationary pressures persisting.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, warned that the data “add to the gloom” surrounding the UK economy.

Companies are cutting jobs at the fastest rate since the global financial crisis in 2009, reflecting falling sales and bleak business prospects. Business optimism remains at its lowest levels in two years, accompanied by subdued activity across sectors.

Inflationary pressures have also “reignited,” creating what Williamson described as a “stagflationary environment” and a “policy quandary” for BoE.

Full UK PMI flash release here.

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