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

Future Retirement Success

Business

Private Sector Expansion Bolsters UK Economic Outlook Despite Manufacturing Decline

by February 6, 2024
February 6, 2024
Private Sector Expansion Bolsters UK Economic Outlook Despite Manufacturing Decline

The latest data reveals that the UK’s private sector experienced stronger expansion than initially estimated in the previous month, sparking optimism amidst expectations of easing inflation and potential interest rate cuts, paving the way for enhanced economic growth.

According to the final composite purchasing managers’ index (PMI) jointly released by S&P Global and the Chartered Institute of Procurement and Supply (CIPS), January witnessed a notable increase to 52.9 from December’s 52.1, surpassing initial projections of 52.5.

This marks the third consecutive month that the composite reading has remained above the pivotal 50-point threshold, indicating expansion rather than contraction. The services sector, in particular, saw a significant uptick, reaching 54.3 in January compared to December’s 53.4, outstripping the initial estimate of 53.8. However, manufacturing activity continued its downward trajectory.

Buoyed by expectations of a brighter economic landscape, both households and businesses have shown renewed spending enthusiasm, leading to a surge in recruitment activities among companies. The Bank of England is anticipated to implement multiple interest rate cuts throughout the year, aiming to mitigate the impact of a 16-year high base interest rate of 5.25 per cent, amidst a backdrop of decreasing inflation.

Commenting on the data, S&P Global and the institute noted a positive shift in private sector employment, with service-oriented industries witnessing growth, counterbalancing job losses in manufacturing.

Despite the optimism, challenges persist, with Bank of England Governor Andrew Bailey cautioning that the pace of interest rate adjustments may not align with market expectations due to lingering underlying price pressures.

Moreover, while the PMI measure of business cost inflation exhibited a decline, indicating a slower pace of price hikes, uncertainty looms regarding the UK’s economic performance, with concerns about a potential recession following a contraction of 0.1 per cent in GDP during the third quarter of the previous year.

Nevertheless, analysts such as Samuel Tombs from Pantheon Macroeconomics remain optimistic, interpreting January’s PMI data as a positive indicator of the UK’s rapid recovery from a probable recession in the latter half of the previous year.

Meanwhile, in the Eurozone, signs of a nascent recovery in private sector output are emerging, albeit with mixed results across member states. Germany, in particular, experienced a decline in its composite reading, driven by a weakened services sector performance, prompting concerns about the nation’s economic trajectory in the early stages of the new year.

Read more:
Private Sector Expansion Bolsters UK Economic Outlook Despite Manufacturing Decline

0
FacebookTwitterGoogle +Pinterest
previous post
UK electric vehicle maker Arrival enters administration putting 170 jobs at risk
next post
Londoners sink £25m party ship in new blow for capital’s night time economy

You may also like

Google to pay record £330m privacy settlement

November 16, 2022

From Deals to Omnichannel Marketing: Customer Retention Strategies...

February 14, 2025

CVC makes £1.5bn approach for IWG’s Instant Group...

November 7, 2022

EU policymakers agree deal on ‘AI Act’ to...

February 14, 2024

Shakespeare’s Globe Theatre feels the impact of Tourist...

August 7, 2023

A Conversation with Seton Noble on Ambition, Impact,...

September 17, 2024

Tax revenues rise £24bn, offering government optimism amid...

November 21, 2024

Nigel Farage to Stand as MP in Clacton,...

June 3, 2024

How fortunate were we, to have experienced Queen...

September 8, 2022

Barriers to small firms’ access to finance could...

December 30, 2022

    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 warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • 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