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PT Solid Gold Berjangka | UK Businesses Grow for First Time in Three Months, but High Rates Weigh

01:31 24 November in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP by admin_sgb_tcc
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Ekonomi U.K Flash Services PMI Flash Manufacturing PMI

 

Solid Gold Berjangka | The provided information highlights the economic situation in the UK based on the S&P Global/CIPS UK Composite Purchasing Managers’ Index (PMI) for November. Here are some key points:

  1. Return to Growth:
    • British companies reported a marginal return to growth in November after three months of contraction.
  2. Composite PMI Reading:
    • The preliminary reading of the S&P Global/CIPS UK Composite PMI for November was 50.1, up from 48.7 in October. A reading above 50 indicates growth.
  3. Government Measures:
    • Finance minister Jeremy Hunt announced measures to boost the country’s weak economic growth.
  4. Downturn in Orders:
    • Despite the return to growth, the downturn in orders continued, reflecting higher interest rates and weak demand.
  5. Total New Orders:
    • Total new orders declined for the fifth consecutive month, indicating a persistently weak economy.
  6. Economic Challenges:
    • Britain’s economy has faced challenges such as the highest inflation rate among big, rich countries and stagnant GDP growth in the third quarter.
  7. Inflation and Interest Rates:
    • The pace of price growth slowed to 4.6% in October. The Bank of England has kept interest rates on hold, but there are warnings of potential persistent inflation.
  8. Sector-specific Performance:
    • The services sector PMI was in positive territory at 50.5, while the manufacturing sector PMI was at 46.7, indicating a decline in output despite being a six-month high.
  9. Input Cost Inflation:
    • Survey respondents reported a slight uptick in input cost inflation.
  10. Wage Growth:
  • “Strong” wage growth was noted, contributing to higher average prices charged by businesses.
  1. Outlook and Risks:
    • While firms were more optimistic about the future, forward-looking indicators suggested that recession risks could remain elevated in the coming year.
  2. Euro Zone Comparison:
    • The Euro zone PMI released on the same day indicated a slight easing of the downturn in November, but there were concerns about a likely contraction in the bloc’s economy in the current quarter.

In summary, the UK economy showed a marginal return to growth in November, but challenges such as a persistent downturn in orders, high inflation, and potential recession risks remained. The government has introduced measures to address economic weaknesses.

Solid Gold Berjangka, Solid Group, SG Berjangka

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