UK S&P Global Composite PMI Flash (Jan) 53.9 vs. Exp. 51.5 (Prev. 51.4)

The UK S&P Global Composite PMI flash for January beat expectations, suggesting stronger economic activity than anticipated.

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UK S&P Global Composite PMI Flash (Jan) 53.9 vs. Exp. 51.5 (Prev. 51.4)

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[MARKET ANALYSIS] European bourses trade lower though the FTSE 100 slightly outperforms

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  • "The good news was tempered, however, by the upturn in order books failing to stem a steep loss of jobs, which companies commonly blamed on the need to reduce high costs. These cost pressures were again often linked to government policies relating to higher National Insurance contributions and the National Minimum Wage, and led to an especially steep drop in hospitality jobs."
  • "High staffing costs were meanwhile again widely reported as a key cause of higher selling prices, hinting at an intensification of price"
Context

However, the concurrent decline in job numbers due to rising costs indicates that growth may be fragile, with inflationary pressures persisting—this could complicate the Bank of England's policy stance going forward.

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