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Original title: Political instability, business confidence collapsed, UK output fell at fastest rate since financial crisis
Source: Wall Street News
The pace of the UK’s economic downturn is gathering pace following the recent political and financial market turmoil.
Political instability and an energy crisis are exacerbating the UK’s economic downturn.
On Monday, IHS Markit data showed that the initial value of the UK composite PMI fell to 47.2 in October from 49.1 in September, which was lower than the expected 48 and hit a 23-month low.It fell further below the line of prosperity and decline.The preliminary reading of the manufacturing PMI in October fell to 45.8 from 48.4 in September, lower than the expected 48 and a 29-month low. Excluding the epidemic year,UK output fell at the fastest pace since the 2009 global financial crisis.
IHS Markit economist Chris Williamson very rarely attributed the economic downturn to political turmoil in the UK:
In addition to political turmoil, the UK economy is suffering from cost pressures from rising energy prices.
EY-Parthenon research shows that 86 British listed companies have issued profit warnings since the third quarter, up from 51 in the same period last year and the highest level since 2008.More than half of the profit warnings were due to rising costs, while a quarter were related to labor shortages.
The retail and hospitality sectors have been hit the hardest, accounting for more than half of all current earnings warning companies. These consumer-facing profit warnings all exemplify the cost issue, and as consumer confidence wanes, many companies say they are working to pass on price increases to customers.
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Responsible editor: Liu Xuanyi