UK businesses in their deepest downward spiral since 2016, signals PMI data


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UK businesses in their deepest downward spiral since 2016, signals PMI data

On Friday, the 22nd of November 2019, surveys reporting UK Markit Manufacturing PMI (Purchasing Managers’ Index) and Service sector PMI had orchaestrated British business environment which had been suffering from its deepest economic downturn since mid-2016 on November, while the pace at which UK’s Manufacturing and Service Sector PMI were slowing over the recent pasts appeared to have gathered pace ahead of a December 12th snap general election in the United Kingdom.

Aside from a further sliding into a technical recession, Friday’s (November 22nd) UK PMI (Purchasing Managers’ Index) data had also revealed that the economy of United Kingdom, the fifth-largest in the world, was slowing at a quarterly pace of 0.2 per cent, nonetheless, some analysts were quoted saying that the PMI data, widely contemplated as a critical indicator to business investments, had overstated economic moderation on multiple occasions in UK, mostly due to a higher government expenses amid preparations for a likely Brexit.

Meanwhile, according to Friday’s (November 22nd) IHS Markit PMI data for UK in November released by GMT 09.30, British manufacturing sector was contracted to a figure of 48.3 from a previous 49.6, while UK service sector shrank to 48.6 in November from an earlier figure of 50.0, pointing towards an economy entirely drowned into a recession, nonetheless, downplaying Markit’s survey report, an analyst at Pantheon, Samuel Tombs said following release of UK PMI data on Friday (November 22nd), “Markit’s survey has been excessively influenced by general concerns among businesses about the Brexit and political outlook and so has become a poor indicator of day-to-day economic activity. ”