GB/PMI: The services sector ends 2022 on a negative note

Posted Jan 5, 2023, 10:59 AM

LONDON, Jan 4 (Reuters) – Britain’s services sector ended 2022 on a gloomy note with falling new orders and employment, final results from the S&P monthly survey showed on Thursday. Global from purchasing managers, who suggest that the UK economy has already entered a recession.

The PMI sector index for December was revised to 49.9 against a figure of 50 announced in the first estimate, this threshold separating expansion and contraction of activity.

Compared to November when the services PMI came in at 48.8, the December data shows an improvement. But the new orders sub-index is showing a contraction for the second consecutive month, while the employment component has fallen to its lowest level since February 2021.

“UK service providers ended the year with a further decline in new orders as strong inflationary pressures and concerns about the economic outlook weighed on demand,” said Tim Moore, chief economics officer at S&P Global.

The S&P Global survey published on Tuesday on the manufacturing sector alone showed that activity in the United Kingdom in December recorded one of its sharpest contractions since the recession of 2008-2009 due to a sharp drop in new orders and job cuts.

The composite PMI index, which combines the services sector and that of the manufacturing industry, also remained in the red in December, at 49.0 after 48.2 in November.

The latest Reuters survey of economists forecasts a contraction of the British economy of 0.9% in 2023. (Reportage Andy Bruce; French version Claude Chendjou, edited by Blandine Hénault)

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