UK economy recession risks on the rise as S&P Global indicates decline in activity

The UK economy is likely to contract again in December as expansion in services sector cannot fully offset the decline in manufacturing.The S&P Global Composite Purchasing Managers Index edged up slightly to 49.0 from 48.2 in November, but remained below the 50 level that usually separates a rise from a decline for the fifth month in a row.December data raises the possibility that the UK is in recession, with PMI pointing to a 0.3% GDP contraction in the fourth quarter, following a 0.2% decline seen in the three months to September. The services PMI, which covers most economic activity, rebounded to 50.0 from 48.8 in November, but the manufacturing PMI fell to 44.7 - its lowest level since June 2020 - from 46. 5.S&P saw a "hard and accelerated" fall in manufacturing employment as new export orders fell for the sixth month in a row. Employment in the service sector has stalled.Forward-looking elements of the survey, such as business confidence and order books, remain low by historical standards, both of which are key indicators of increased levels of economic stress.

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/uk-economy-recession-risks-on-the-rise-as-s-and-p-global-indicates-decline-in-activity"
via IFTTT