UK PMI falls below 50 for first time since 2022, signaling economic contraction

LONDON, Nov. 22 (Xinhua) -- The United Kingdom's (UK) flash Purchasing Managers' Index (PMI) dropped from 51.8 in October to 49.9 in November, falling below the 50.0 no-change threshold for the first time since October 2022, according to data released by S&P Global on Friday.

The seasonally adjusted UK PMI Composite Output Index hit a 13-month low, indicating a potential economic contraction at a quarterly rate of 0.1 percent, based on historical links between PMI data and gross domestic product (GDP) performance.

S&P Global said manufacturing continued to drive the downturn, with factory production edging lower following near stagnation in October. New orders at factories dropped for the second consecutive month, marking the sharpest decline since February. This slowdown also impacted the services sector, where business activity growth stalled in November, ending a 13-month streak of expansion.

Business confidence plunged to its lowest level since December 2022, well below the survey's long-term average. S&P Global highlighted that the decline in sentiment since the General Election was among the largest recorded since comparable data began in 2012, excluding the pandemic and the 2016 Brexit vote.

The sharpest decreases in output expectations were seen in the services sector, although manufacturing confidence also weakened, creating subdued optimism across both industries.

The survey data underscore challenges facing the UK economy as business activity contracts and confidence wanes, raising concerns about future growth prospects. ■