UK services PMI at two-year low in January
United Kingdom Services PMI Business Activity Index stood at 48.7 in January 2023, decreasing 1.2 index points compared to the month prior but rising 0.7 index points from the preliminary figure, S&P Global and Chartered Institute of Procurement & Supply (CIPS) said in a report on Friday. The main reading still landed at its weakest point since January 2021.
"The latest survey illustrates that the UK economy risks falling into recession" after "cutbacks to business and consumer spending resulted in a fourth consecutively monthly reduction in output levels," S&P Global Market Intelligence Economics Director Tim Moore warned. However, optimism about the year ahead for the services sector was the highest since April 2022.
Meanwhile, the UK Composite PMI was down 0.5 index points from December 2022 to 48.5 in January, remaining in contraction territory for the sixth straight month.