United Kingdom - PMI Komposit

The IHS Markit/CIPS Flash UK Composite PMI declined to 48.5 in December of 2019 from 49.3 in November, below market expectations of 49.6. It is the deepest contraction in private sector activity since July of 2016, amid further drops in both manufacturing (47.4 from 48.9 in November, 4-month low) and services (49 from 49.3, 9-month low). Companies attributed lower business activity to a combination of domestic political uncertainty, a lack of clarity in relation to Brexit and subdued global economic conditions. Employment decreased for the fourth consecutive month, amid subdued order books and delays to decision making in the lead up to the general election. A sustained fall in new business intakes resulted in the sharpest reduction in backlogs of work since July 2016. On the price front, input price inflation remained low and softer cost pressures and intense competition for new work contributed to the slowest rise in prices charged by private sector firms since April 2016.

The IHS Markit/CIPS UK Composite PMI was revised higher to 49.3 in November 2019 from a preliminary 48.5 and compared to October's final 50.0. Still, the latest reading was the joint-lowest figure since July 2016, equalling that seen in September, and signalled a marginal reduction in private sector output. Both manufacturing and service sectors contracted.