Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Output growth across manufacturing and services measured by the PMI surveys came in slightly faster than expected in November.
Solid service sector growth that far exceeded the pre-pandemic long-run average contrasted with only modest production growth in the manufacturing sector.
Employment rose for the ninth successive month in November, according to the flash PMI data, rising at the slowest rate since April yet remaining far above the survey’s long-run average.
A combination of sustained buoyant UK business growth, further job market gains and record inflationary pressures give a green light for interest rates to rise when the Bank of England meets in December.
UK Economy sustains strong momentum in November. The output growth across manufacturing and services measured by the PMI surveys came in slightly faster than expected in November.
The IHS Markit/CIPS composite PMI output index registered 57.7 according to the preliminary ‘flash’ reading, down from 57.8 in October, but remaining well above the 50.0 neutral level to indicate a robust expansion of the economy. The latest reading was above the consensus of a slightly stronger pull-back to 57.5.
The fresh data means the fourth quarter should see a welcome pick up in GDP growth after the slowdown to 1.3% seen in the third quarter.
At 57.8, the average reading for the fourth quarter so far is already running higher than the mean of 56.3 registered in the three months to September, and an acceleration of new business inflows recorded before November.
Service sector reliance as factories struggle
The news was by no means all positive, notably with growth once again heavily skewed towards the service sector.
