|
The UK private sector lost impetus in November, according to a preliminary purchasing managers’ index reading from S&P Global, despite manufacturing swinging to growth from contraction. The flash composite PMI fell to a two-month low of 50.5 points in November from October’s final tally of 52.2. Falling closer to the 50-point neutral mark, the reading suggests the UK private sector was nearly stagnant this month ahead of next week’s UK government budget. ‘This slowdown was underscored by a softer rise in service sector activity. Despite remaining in expansion mode for a seventh month running, services firms recorded only a marginal upturn that was the weakest in this sequence. Many businesses attributed this to heightened client caution ahead of the November budget. Meanwhile, manufacturers experienced an uptick in output, following the first rise in a year in October,’ S&P Global said. The composite PMI is calculated using a weighted average of the services and manufacturing readings. The flash manufacturing PMI rose to 50.2 points in November from 49.7 in October. The flash November reading represents a 14-month high. The services PMI, however, fell to a seven-month low of 50.5 from 52.3 in October. ‘Survey data indicated that a boost in domestic orders and a less severe decline in export market demand supported increased production. Goods producers often reported weak global demand and increased overseas competition. However, some panellists cited a pick-up in sales from regions such as Asia-Pacific and the Middle East,’ S&P Global commented. ‘Total new business across the private sector edged lower in November, with services firms experiencing a renewed contraction after three months of expansion. This decline was partly offset by the first increase in manufacturing order book volumes since September 2024. Private sector export volumes also fell, but the rate of decline slowed for the second month running.’ Expectations for the future moderated from the 12-month high seen in October. Services firms were more cautious, S&P Global said, though confidence among manufacturers picked up. The final manufacturing reading is released on December 1, before the services and composite data two days later. The survey features a panel of 650 manufacturers and 650 service providers. The flash estimate is compiled using around 80% to 90% of the responses. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
