The latest figures on the UK economy indicate a cooling off in business activity, as revealed by the S&P Global/CIPS UK Composite PMI. After experiencing a modest expansion with a reading of 51.8 in October 2024, the index has now dropped to 49.9 in November, reflecting a contraction in economic activity.
A reading below the threshold of 50 typically signifies a downturn in business conditions, raising concerns about the UK's economic momentum as the yearend approaches. The dip marks a significant turnaround for the UK, indicating that both the services and manufacturing sectors may be facing increased headwinds.
This decline, updated as of 22 November 2024, signals potential challenges for policymakers as they navigate the complex landscape of slowing growth amidst global and domestic uncertainties. Stakeholders and investors alike will be closely monitoring the upcoming data to gauge the sustainability of economic trends and to adapt their strategies accordingly.