Latest news with #GlobalUKCompositePurchasingManagers'Index
Fashion Network
5 days ago
- Business
- Fashion Network
UK businesses struggle to grow as BoE rate decision approaches
British business activity across sectors grew only weakly in July and employers cut jobs at the fastest pace in five months, according to a survey that is likely to add to speculation about a Bank of England interest rate cut next month. The S&P Global UK Composite Purchasing Managers' Index (PMI), published on Thursday, slowed to 51.0 points from 52.0 in June, not far above the 50.0 level that separates growth from contraction. A Reuters poll had forecast a smaller fall to 51.8. The survey's employment gauge dropped to 45.1, its lowest since February, with businesses in part blaming the decision by British finance minister Rachel Reeves to make them pay more in social security contributions for their staff from April. "Particularly worrying is the sustained impact of the budget measures on employment," Chris Williamson, chief business economist at S&P Global Market Intelligence, said. "Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July." Worries about weak demand were also weighing on hiring decisions, S&P Global said. The BoE is expected to cut interest rates for the fifth time in 12 months on August 7 as it focuses on signs of a slowdown in the jobs market, even as inflation remains above the central bank's 2% target and rose to 3.6% in June. Williamson said Thursday's survey suggested Britain's economy was growing at a quarterly pace of just 0.1% with a risk that it could prove weaker. However, the PMI underscored the BoE's dilemma with growth in prices charged by firms speeding up for the first time since April as suppliers sought to offset some of the tax increase and higher wage bills.
Fashion Network
5 days ago
- Business
- Fashion Network
UK businesses struggle to grow as BoE rate decision approaches
British business activity across sectors grew only weakly in July and employers cut jobs at the fastest pace in five months, according to a survey that is likely to add to speculation about a Bank of England interest rate cut next month. The S&P Global UK Composite Purchasing Managers' Index (PMI), published on Thursday, slowed to 51.0 points from 52.0 in June, not far above the 50.0 level that separates growth from contraction. A Reuters poll had forecast a smaller fall to 51.8. The survey's employment gauge dropped to 45.1, its lowest since February, with businesses in part blaming the decision by British finance minister Rachel Reeves to make them pay more in social security contributions for their staff from April. "Particularly worrying is the sustained impact of the budget measures on employment," Chris Williamson, chief business economist at S&P Global Market Intelligence, said. "Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July." Worries about weak demand were also weighing on hiring decisions, S&P Global said. The BoE is expected to cut interest rates for the fifth time in 12 months on August 7 as it focuses on signs of a slowdown in the jobs market, even as inflation remains above the central bank's 2% target and rose to 3.6% in June. Williamson said Thursday's survey suggested Britain's economy was growing at a quarterly pace of just 0.1% with a risk that it could prove weaker. However, the PMI underscored the BoE's dilemma with growth in prices charged by firms speeding up for the first time since April as suppliers sought to offset some of the tax increase and higher wage bills.
Fashion Network
5 days ago
- Business
- Fashion Network
UK businesses struggle to grow as BoE rate decision approaches
British business activity across sectors grew only weakly in July and employers cut jobs at the fastest pace in five months, according to a survey that is likely to add to speculation about a Bank of England interest rate cut next month. The S&P Global UK Composite Purchasing Managers' Index (PMI), published on Thursday, slowed to 51.0 points from 52.0 in June, not far above the 50.0 level that separates growth from contraction. A Reuters poll had forecast a smaller fall to 51.8. The survey's employment gauge dropped to 45.1, its lowest since February, with businesses in part blaming the decision by British finance minister Rachel Reeves to make them pay more in social security contributions for their staff from April. "Particularly worrying is the sustained impact of the budget measures on employment," Chris Williamson, chief business economist at S&P Global Market Intelligence, said. "Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July." Worries about weak demand were also weighing on hiring decisions, S&P Global said. The BoE is expected to cut interest rates for the fifth time in 12 months on August 7 as it focuses on signs of a slowdown in the jobs market, even as inflation remains above the central bank's 2% target and rose to 3.6% in June. Williamson said Thursday's survey suggested Britain's economy was growing at a quarterly pace of just 0.1% with a risk that it could prove weaker. However, the PMI underscored the BoE's dilemma with growth in prices charged by firms speeding up for the first time since April as suppliers sought to offset some of the tax increase and higher wage bills.
Al Etihad
23-06-2025
- Business
- Al Etihad
Sterling at five-week low against dollar as markets mull Middle East risk
23 June 2025 16:12 LONDON (Reuters)The pound fell against the dollar on Monday with the greenback benefiting from safe-haven demand as investors assessed the risk of an Iranian response to US attacks on its nuclear 1054 GMT the pound was down 0.5% versus the dollar at $1.33795, its lowest level since May focus is firmly on the price of oil, which earlier spiked as much as 5.7% and was last up 0.5%.Elsewhere, UK flash PMIs hit screens showing business activity expanded modestly in June, but the data barely moved the needle on the S&P Global UK Composite Purchasing Managers' Index rose to 50.7 from 50.3 in May - edging further above the 50.0 growth threshold. The Bank of England held interest rates at 4.25% last Thursday as expected but flagged a weaker labour market and the risk of higher energy prices as conflict in the Middle East escalated.
Business Recorder
23-06-2025
- Business
- Business Recorder
Sterling at five-week low against dollar as markets mull Middle East risk
LONDON: The pound fell against the dollar on Monday with the greenback benefiting from safe-haven demand as investors assessed the risk of an Iranian response to U.S. attacks on its nuclear sites. By 1054 GMT the pound was down 0.5% versus the dollar at $1.33795, its lowest level since May 20. British Prime Minister Keir Starmer spoke to U.S. President Donald Trump on Sunday, his office said. Starmer also urged Iran to return to the negotiating table. Market focus is firmly on the price of oil, which earlier spiked as much as 5.7% and was last up 0.5%. 'Ultimately the pound is exposed…Pro-cyclical currencies have a negative sensitivity to oil prices,' said Francesco Pesole, FX strategist at ING. Elsewhere, UK flash PMIs hit screens showing business activity expanded modestly in June, but the data barely moved the needle on the pound. The S&P Global UK Composite Purchasing Managers' Index rose to 50.7 from 50.3 in May - edging further above the 50.0 growth threshold. Sterling gain slightly against dollar 'Overall, the PMIs suggest that the biggest hit to the economy was in April and things are now starting to recover. That said, the subdued level of the PMIs is still pointing to near stagnation,' Thomas Pugh, chief economist at RSM UK, wrote in a note. The Bank of England held interest rates at 4.25% last Thursday as expected but flagged a weaker labour market and the risk of higher energy prices as conflict in the Middle East escalated. Despite the hold, market watchers took a doveish hint from the 6-3 vote split in favour of keeping rates on hold, with three MPC members in favour of a cut, a factor that is still playing a role according to ING's Pesole. 'Markets are still tending towards the doveish side for the pound curve,' he said. As of Monday, 58% of traders were betting on a 25-bps rate cut at the BoE's next session in August, with 42% betting on no change.
