Unexpected Decline in Business Sentiment in the UK

Business sentiment in the United Kingdom took a surprising downturn in November, as reflected in the latest Purchasing Managers’ Index (PMI) from S&P Global. The index dropped by 1.9 points from the previous month, landing at 49.9, according to preliminary figures released by S&P Global on Friday in London. Economists had anticipated a modest dip to 51.7, making the actual figures notably worse than expected.

This decline signals a slight contraction in economic activity, with the index slipping just below the critical growth threshold of 50 points.

Breaking down the data, the services sector PMI fell by 2.0 points to 50.0, indicating stagnation in activity. Meanwhile, the manufacturing PMI declined by 1.3 points to 48.6, continuing its contractionary trend.

“The first economic survey conducted after the passing of the state budget makes for grim reading,” commented Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. “Businesses have reported their first decline in output in over a year, while employment has now dropped for two consecutive months.”

These findings highlight mounting challenges for the UK economy, with weakening demand and growing concerns about the broader economic outlook becoming more evident across sectors