Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK economic growth slows amid uncertainty over upcoming budget

by September 23, 2024
September 23, 2024

The pace of economic growth in the UK slowed in September, as concerns about the government’s upcoming budget weighed on business activity, according to a preliminary estimate from the widely tracked PMI (Purchasing Managers’ Index).

The UK PMI “flash” composite output index, which measures business activity in both the services and manufacturing sectors, slipped to 52.9 in September from 53.8 in August, falling short of the consensus forecast of 53.5. Although the figure remains above the 50-point threshold, indicating continued growth, it reflects a deceleration in the pace of recovery.

The PMI, compiled by S&P Global from a survey of 1,300 firms, highlighted that businesses are increasingly adopting a “wait and see” approach in the lead-up to Chancellor Rachel Reeves’ budget announcement on October 30. Some companies have paused investment and recruitment decisions until fiscal policies are clarified.

Chris Williamson, chief economist at S&P Global Market Intelligence, noted that while business optimism had risen, uncertainty about the budget was “jangling nerves,” particularly in the manufacturing sector. “Investment plans have been put on hold, and hiring has slowed as businesses await clarity on government policies, especially taxation,” he said.

Both services and manufacturing sectors experienced a slower pace of growth than in August, with new business tempered by fragile client confidence and a reduction in inventory levels. However, Williamson was optimistic, stating that the data suggested a “soft landing” for the UK economy and that inflation pressures appeared to be easing without triggering a downturn.

While costs faced by businesses rose in September, breaking a 45-month low recorded in August, the rate at which companies raised prices was the slowest since February 2021, hinting that inflationary pressures may be under control.

Despite the slowdown, Alex Kerr from Capital Economics said the dip in the PMI was not indicative of a looming downturn. He expects the Bank of England to make one more cut to the base rate this year, following the reduction from 5.25% to 5% in August, with further cuts expected in 2024.

The final PMI report, based on more complete data, may revise these initial estimates.

Read more:
UK economic growth slows amid uncertainty over upcoming budget

0
FacebookTwitterGoogle +Pinterest
previous post
GMB calls for government to prioritise union-friendly firms in public contracts
next post
Trinny London secures £15m growth funding to fuel expansion plans

You may also like

Half of employees have not received a pay...

August 25, 2022

UK entrepreneurism is being threatened by online scams

December 4, 2023

100 jobs under threat at Grimsby-based smart home...

May 19, 2023

Government and Ofgem act to rein in unscrupulous...

April 5, 2024

Fears grow that Tata Steel could be excluded...

June 5, 2025

UK Delays Health and Safety Checks on EU...

April 20, 2024

Twitter to let publishers charge users per article...

May 1, 2023

What is Gold Melt Value?

November 8, 2022

Maison Sport Secures £3M Investment to Expand European...

November 30, 2023

Retail sales fall sharply in March as weak...

March 25, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump closes out 30th week in office with ‘very warm’ high-stakes Putin meeting

      August 16, 2025
    • State Department stops issuing all visitor visas for individuals from Gaza

      August 16, 2025
    • Zelenskyy outlines peace demands before high-stakes White House meeting with Trump

      August 16, 2025
    • Putin backs Trump’s claim that the Ukraine war would not have happened if he’d won 2020 election

      August 16, 2025
    • ROBERT MAGINNIS: What comes next for US, Russia and Ukraine after Alaska summit

      August 16, 2025
    • Zelenskyy to meet with Trump in Washington, DC following US-Russia talks

      August 16, 2025

    Categories

    • Business (8,798)
    • Investing (2,217)
    • Politics (16,400)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved