UK Service Sector Recovers In November

RTTNews | 633 days ago
UK Service Sector Recovers In November

(RTTNews) - The UK service sector expanded for the first time in four months in November as demand conditions stabilized and staffing returned to growth amid moderate improvement in expectations for the year ahead, final survey results from S&P Global revealed Tuesday.

The final Chartered Institute of Procurement & Supply services Purchasing Managers' Index advanced to 50.9 in November from 49.5 in October. The flash reading was 50.5.

The score was above the 50.0 no-change value for the first time in four months signaling expansion in the service sector.

Higher level of activity was attributed to rising demand and the completion of unfinished projects. Backlogs of work were depleted for the sixth straight month.

Nonetheless, there was only a marginal rise in new orders. Firms cited weak business and consumer confidence as well as higher borrowing cost for subdued spending.

Exports increased in November, especially due to higher demand from the U.S.

Reflecting positive trends in activity and incoming new orders, companies raised staffing levels. The slight increase in employment contrasted with a marked downturn in September. Business optimism edged up in November but remained softer than the average in the first half of 2023.

Average cost burdens increased in November but the rate of inflation was the second-lowest since March 2021.

However, output charge inflation was the strongest since July despite firms reporting stretched client budgets and limited pricing power.

The overall private sector output ended a three-month sequence of moderate contractions in November.

The final composite output index rose to 50.7 from 48.7 in the previous month. The score was slightly above the flash 50.1.

Elsewhere, data from the British Retail Consortium showed that households held back on Christmas spending.

The total retail sales logged a slower growth of 2.7 percent in November compared to 4.2 percent increase in the same period last year.

Food sales increased 7.6 percent, while non-food sales dropped 1.6 percent from the last year.

"Black Friday began earlier this year as many retailers tried to give sales a much-needed boost in November," Helen Dickinson, chief executive of the BRC, said.

"While this had the desired effect initially, the momentum failed to hold throughout the month, as many households held back on Christmas spending," Dickinson added.

read more
UK Inflation Hits 18-Month High

UK Inflation Hits 18-Month High

UK consumer price inflation accelerated to an 18-month high in July on airfares and food prices, suggesting that the Bank of England is likely to delay further easing. The consumer price index posted an annual growth of 3.8 percent after rising 3.6 percent in June, the Office for National Statistics reported Wednesday.
RTTNews | 9 days ago
UK GDP Rises More Than Expected

UK GDP Rises More Than Expected

The UK economy expanded more than expected in the second quarter but the overall growth softened as US frontloading propelled growth at the start of the year. Gross domestic product expanded 0.3 percent in the second quarter largely driven by growth in the service sector, the Office for National Statistics reported Thursday. Although the rate was stronger than the expected growth of 0.1 pe
RTTNews | 15 days ago
UK Labor Market Cools In Q2

UK Labor Market Cools In Q2

The U.K. labor market softened in the second quarter as wage growth eased, the unemployment rate held steady at a four-year high and job vacancies continued to decline sharply, official data revealed on Tuesday. The ILO jobless rate held steady at 4.7 percent in the second quarter, figures from the Office for National Statistics revealed and was in line with expectations.
RTTNews | 17 days ago
UK Job Placements Decline Sharply On Weaker Confidence & Budget Pressures

UK Job Placements Decline Sharply On Weaker Confidence & Budget Pressures

UK job placements logged a steep decline in July due to weaker confidence around the economic outlook and rising employment costs, monthly data from S&P Global showed Monday. Permanent staff appointments declined sharply in July and temp billings registered its biggest fall in five months, the KPMG/REC Report on Jobs said.
RTTNews | 18 days ago
Bank Of England Cuts Rate In Tight Vote

Bank Of England Cuts Rate In Tight Vote

The Bank of England reduced its benchmark interest rate in a close call on Thursday suggesting that the monetary easing cycle is nearing an end as policymakers became more concerned about persistent inflation. The Monetary Policy Committee, headed by BoE Governor Andrew Bailey, voted 5-4 to cut the bank rate by 25 basis points to 4.00 percent.
RTTNews | 22 days ago
UK House Prices Rise At Fastest Pace In 6 Months

UK House Prices Rise At Fastest Pace In 6 Months

UK house prices grew at the fastest pace in six months in July as the property market started to stabilize following the end of the stamp duty holiday, data from the mortgage lender Halifax showed on Thursday. House prices increased by more-than-expected 0.4 percent in July from June. Prices were expected to grow at a steady pace of 0.1 percent in July. Moreover, this was the fastest growth sinc
RTTNews | 22 days ago
Downturn In UK Construction Activity Deepens

Downturn In UK Construction Activity Deepens

The UK construction sector downturn deepened in July as volumes of work carried out across all sectors decreased markedly, survey results from S&P Global showed on Wednesday. The headline construction Purchasing Managers' Index fell to 44.3 in July from 48.8 in June. The score signaled the sharpest contraction since May 2020.
RTTNews | 23 days ago
UK House Price Growth Accelerates In July

UK House Price Growth Accelerates In July

UK house prices grew at a faster pace in July reflecting steadily improving housing affordability and moderate fall in mortgage rates, Nationwide Building Society said on Friday. House prices increased 2.4 percent on a yearly basis in July, following June's 2.1 percent increase. Prices were expected to climb at a steady pace of 2.1 percent in July.
RTTNews | 28 days ago