UK private sector activity contracted in November, ending 12 months of growth, with the S&P Global Flash UK PMI Composite Output Index falling to 49.9, down from 51.8 in October, signalling a fractional decline in output. Service providers saw no change in business activity, while manufacturers reported the fastest drop in production since February. The slowdown was attributed to weak demand, subdued business confidence, and geopolitical uncertainty, leading to the weakest new business growth since December 2023. Employment in the private sector also declined, with firms reporting marginal reductions due to rising payroll costs and hiring freezes. Input prices rose sharply, particularly in the service sector, but prices charged by firms increased at the slowest pace since February 2021. Business optimism for the year ahead also dropped sharply, with service sector confidence notably weaker due to anticipated cost increases and investment hesitancy. Attribution: S&P Global Subediting: M. S. Salama
