UK Composite PMI drops to 4-month low in October

Friday, 23. October 2020 10:31

The Composite Output Index for the United Kingdom dropped to its lowest value in four months, landing at 52.9 in October, IHS Markit said in its preliminary report published on Friday. While the decrease was evident, the figure still stood above the 50.0 no-change level.

The Services Business Activity Index also landed at a 4-month low by falling to 52.3, as well as the Manufacturing Output Index which slid to 56.4. The Manufacturing PMI for October decreased to a 3-month low by arriving at 53.3. Business expectations for next year eased further, while the degree of confidence tumbled to the level last seen in May.

"The pace of UK economic growth slowed in October to the weakest since the recovery from the national COVID-19 lockdown began," Chief Business Economist Chris Williamson said, adding that "while Brexit preparations may cause a short-term boost to some parts of the economy ahead of 31st December, rising COVID-19 cases and the imposition of local lockdown measures bode ill for the near-term economic outlook."

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