Eurozone Woes, UK ok though4 Jan 2024 13:29
Britain’s private sector companies ended last year “on a high” just as businesses in the eurozone face a recession, latest survey data show.
Closely-watched purchasing managers indexes (PMIs) compiled by S&P Global show that Britain’s services sector saw the fastest jump in activity in December for six months, beating expectations.
The final composite PMI - covering both manufacturing and services - rose to 52.1 in December, up from 50.7 in November in what was the best performance of all the world’s major economies. A reading above 50 indicates growth.
Tim Moore, economics director at S&P Global Market Intelligence, said the UK service sector “ended last year on a high” amid a recovery in client demand “attributed to hopes of lower borrowing costs and an improving global economic backdrop in 2024”.
Meanwhile, the eurozone could be in recession after a contraction in business activity continued at the end of 2023.
The bloc’s PMI was revised up for December to match November’s 47.6 but it remained below the 50 mark for a seventh month.
That indicated that the economy of the 20-country currency union, which shrank 0.1pc in the third quarter of 2023, likely contracted again last quarter, meeting the technical definition of a recession.
In a further blow, inflation in the eurozone’s second-largest economy France accelerated in December from 3.5pc to 3.7pc, with food prices a persistent sore point for consumers.