Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

UK businesses stuck in reverse in October, surveys show

By Andy Bruce

LONDON (Reuters) -Britain’s businesses reported another decline in activity this month and cost pressures cooled further, surveys showed on Tuesday, underlining the risk of recession as the Bank of England prepares for its interest rate decision next week.

The “flash” preliminary reading of the S&P Global UK Purchasing Managers’ Index (PMI) for the services sector fell in October to 49.2 from 49.3 in September, the lowest reading since January and below the 50 no-change mark for a third month.

A Reuters poll of economists had pointed to an unchanged reading.

A separate Confederation of British Industry survey of factories showed the biggest drop in new orders since early 2021 as well as a sharp fall-off in cost pressures and hiring plans.

Adding to the downbeat tone, labour market data on Tuesday showed falling numbers of employed people and a small rise in the number who are unemployed, although the jobless rate stayed at 4.2%. The PMI also pointed to rising redundancies.

Britain’s economy looks on course for a quarterly decline in economic output of around 0.1%, PMI company S&P Global said, with optimism in boardrooms falling to its lowest point so far this year.

“This supports our view that a mild recession is underway and that the Bank of England has finished hiking interest rates,” said Ruth Gregory, deputy chief UK economist at consultancy Capital Economics.

The services PMI’s gauge of new business fell to its lowest level since November last year, although the recent deterioration in employment eased a little.

Readings from France and Germany pointed to a worsening downturn in the euro zone.

The readings are likely to reinforce expectations that the BoE will keep interest rates on hold for a second meeting in a row on Nov. 2. Governor Andrew Bailey said last week that recent data had turned out broadly as the BoE expected.

Services companies reported the smallest increase in input costs since February 2021, although selling prices rose at a slightly faster rate.

A little over a third of the economists polled by Reuters said they expected a recession.

The PMI for the manufacturing sector rose to 45.2 from September’s 44.3, a three-month high but still signalling a rapid contraction in output.

Manufacturers’ selling prices contracted at the fastest rate since February 2016.

The composite PMI, which combines services activity and manufacturing output, inched up to 48.6 from 48.5.

(Reporting by Andy Bruce; Editing by Hugh Lawson and Jan Harvey)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts