UK PMI Report Reveals Continued Contraction Amid Weak Services
The UK’s primary economic indicator, the PMI Output Index, has eased to 49.4, marking the lowest reading in 14 months. This signals another consecutive contraction, with services remaining the primary driver of weakness. The businesses emphasized ongoing issues across the sector, even as some resilience appears in the manufacturing space.
Manufacturing data shows improvement, rising from 52.2 to 53.6, representing the strongest level in nearly two years. Analysts suggest this gain might be short-lived, as firms continue to stockpile amid lingering supply chain challenges.
Overall, the economy has flatted more than once during the quarter, with services under pressure and manufacturing contributing some positive momentum. Policy makers face a challenging environment, balancing cost pressures, supply issues, and uncertain growth prospects.
Full UK PMI flash release available.
