Britain’s private sector suffered its worst month in more than two and a half years, a closely-watched survey showed, as a major investment bank predicts the UK is heading for recession.
The pound has dropped 0.9pc after the latest S&P Global/CIPS Flash UK purchasing managers’ index data, which showed output in the economy shrank for the first time in six months.
The reading of 47.9, a 31-month low and under the 50 mark which indicates a contraction, comes as Citi said it expects the UK to fall into recession.
The investment bank warned that global growth next year will slow to below 2pc from a lower than expected 2.4pc this year, caused by recessions in the UK and US and a continuing slowdown in China.
Chris Williamson, chief business economist at S&P Global said: “Companies are reporting reduced orders for goods and services as demand is increasingly hit by the cost-of-living crisis, higher interest rates, export losses and concerns about the economic outlook.
“Although cost pressures remain elevated, thanks mainly to rising wages, the deteriorating demand environment is curbing companies’ pricing power.”
So we didn’t miss the recession just kicked the can down the road
Just wait until the Brexit tariffs actually start happening in Jan. Me? I am pretty sure we’ve been in a recession since like 2016.
I work in a highly reactive technical sector which deals with the UK and European market and by its nature is a pretty strong indicator of industry activity. We’ve had an extremely quiet month, but it’s common this time of year as most of Europe is on holiday throughout August. Although recession is on the cards, I think it’s too early to call until we see how September turns out.
And yet we will always find money for the current thing 🙄
5 comments
TEXT by Chris Price:
Britain’s private sector suffered its worst month in more than two and a half years, a closely-watched survey showed, as a major investment bank predicts the UK is heading for recession.
The pound has dropped 0.9pc after the latest S&P Global/CIPS Flash UK purchasing managers’ index data, which showed output in the economy shrank for the first time in six months.
The reading of 47.9, a 31-month low and under the 50 mark which indicates a contraction, comes as Citi said it expects the UK to fall into recession.
The investment bank warned that global growth next year will slow to below 2pc from a lower than expected 2.4pc this year, caused by recessions in the UK and US and a continuing slowdown in China.
Chris Williamson, chief business economist at S&P Global said: “Companies are reporting reduced orders for goods and services as demand is increasingly hit by the cost-of-living crisis, higher interest rates, export losses and concerns about the economic outlook.
“Although cost pressures remain elevated, thanks mainly to rising wages, the deteriorating demand environment is curbing companies’ pricing power.”
So we didn’t miss the recession just kicked the can down the road
Just wait until the Brexit tariffs actually start happening in Jan. Me? I am pretty sure we’ve been in a recession since like 2016.
I work in a highly reactive technical sector which deals with the UK and European market and by its nature is a pretty strong indicator of industry activity. We’ve had an extremely quiet month, but it’s common this time of year as most of Europe is on holiday throughout August. Although recession is on the cards, I think it’s too early to call until we see how September turns out.
And yet we will always find money for the current thing 🙄