london skyline

United Kingdom PMI January 2022

United Kingdom: Composite PMI eases in January

The IHS Markit/CIPS Flash Composite Purchasing Managers’ Index (PMI) came in at 53.4 in January, down from December’s 53.6. January’s result marked the weakest reading since February. As such, the index remained above the 50-threshold, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.

The Manufacturing PMI came in at 56.9 in January, down from December’s 57.9. Meanwhile the Services PMI fell to 53.3 in January (December: 53.6). On the manufacturing front, production growth accelerated on an improved availability of materials. That said, momentum in new orders eased. Meanwhile, the services sector was dampened by weakness in customer-facing sectors amid the spread of Omicron, with consumers exercising greater caution and forced to self-isolate as a result. On the price front, input cost inflation accelerated in the private sector as a whole, as stronger price pressures in the services sector more than offset weaker price pressures in the manufacturing sector. Finally, business sentiment improved.

Regarding the near-term outlook, Chris Williamson, chief business economist at IHS Markit, commented:

“Looking ahead, while the Omicron wave meant the hospitality sector has sunk into a third steep downturn, these restrictions are now easing, meaning this downturn should be brief. Many business and financial services companies have meanwhile been far less affected by Omicron, and saw business growth accelerate at the start of the year.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest