UK S&P Global/CIPS Composite PMI declines to 49.9 in November vs. 51.8 expected
- Business activity in the UK private sector contracted slightly in early November.
- GBP/USD trades at its weakest level since May below 1.2550.
Business activity in the UK private sector contracted in early November, with the preliminary S&P Global/CIPS Composite Purchasing Managers Index (PMI) falling to 49.9 from 51.8 in October. This reading came in below the market expectation of 51.8.
In the same period, the Manufacturing PMI slumped to 48.6 from 49.9, showing an acceleration in the contraction rate of the manufacturing sector's economic activity. Additionally, the Services PMI declined to 50 from 52.
Assessing the survey's findings, "Businesses have reported falling output for the first time in just over a year while employment has now been cut for two consecutive months," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said and added:
"Although only marginal, the downturns in output and hiring represent marked contrasts to the robust growth rates seen back in the summer and are accompanied by deepening concern about prospects for the year ahead."
Market reaction
GBP/USD stays on the back foot following the PMI report and was last seen losing 0.5% on the day at 1.2528.
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