UK February flash providers PMI 51.1 vs 50.eight anticipated

• Companies PMI 51.1 vs 50.eight anticipated vs. 50.eight prior
• Manufacturing PMI 46.four vs 48.four anticipated vs. 48.three
  prior
• Composite PMI 50.5 vs 50.5 anticipated and 50.6 prior.

Key findings:

• Flash UK PMI Composite Output Index: 50.5 (Jan: 50.6).
  2-month low.
• Flash UK Companies PMI Enterprise Exercise Index: 51.1
  (Jan: 50.eight). 2-month excessive.
• Flash UK Manufacturing Output Index: 47.four (Jan: 49.2).
  2-month low.
• Flash UK Manufacturing PMI: 46.four (Jan: 48.three). 14-
  month low

Remark:

Commenting on the flash PMI information, Chris Williamson,
Chief Enterprise Economist at S&P World Market
Intelligence stated:

“Early PMI survey information for February point out that
enterprise exercise remained largely stalled for a fourth
successive month, with job losses mounting amid falling
gross sales and rising prices.

“The shortage of progress alongside rising worth pressures
factors to a stagflationary atmosphere which is able to current
a rising dilemma for the Financial institution of England.

“Whereas marginal output progress was eked out in February,
order books deteriorated at a fee not seen since August
2023 to trace at possible cuts to enterprise exercise within the
coming months until demand revives.

“Companies’ prices are in the meantime rising at a fee not
witnessed since Might 2023, the speed of inflation having
now accelerated for 4 straight months, placing additional
upward strain on promoting costs for each items and
providers. The survey information level to an extra rise in
inflation past the most recent uptick to three%.

“A key issue behind the upturn in inflationary pressures
is the rising variety of corporations reporting the necessity to
elevate costs as a way to assist offset the upcoming rise in
employees prices related to the Nationwide insurance coverage hike
and uplift to the minimal wage introduced within the
autumn Funds.

“Nonetheless, firms additionally reported that the Funds
adjustments additionally performed a serious position in driving intensifying
job cuts. Employment fell sharply once more in February,
dropping at a fee not seen because the world monetary
disaster if pandemic months are excluded. One in three
firms reporting decrease staffing ranges instantly linked
the discount to insurance policies introduced in final October’s
Funds.”

This text was written by Giuseppe Dellamotta at www.ubaidahsan.com.



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