UK composite PMI drops to 51.8, slowest growth since November

The S&P Global UK Composite PMI fell to 51.8 in October, down from 52.6 in September, marking the slowest growth since November 2023, though it slightly surpassed the preliminary estimate of 51.7.

UK composite PMI drops to 51.8, slowest growth since November

This decline indicates weaker performance in manufacturing (with a PMI of 49.9, down from 51.5) and services (with a PMI of 52, down from 52.4). The report highlights that new orders increased slowly in four months, contributing to a slight decline in employment levels. The rate of job cuts accelerated, reaching its highest level since September 2023, signaling growing business concerns.

Input cost inflation eases, offering hope for economic stabilization

Despite these challenges, there was a silver lining: input cost inflation eased, mainly due to reduced cost pressures in the manufacturing sector. Companies reported that the moderation in input costs may provide some relief, allowing them to adjust pricing strategies moving forward. Overall, while the composite PMI reflects a slowing economic momentum, easing inflationary pressures offers a glimpse of hope for stabilization shortly.