(News Bulletin 247) – The decline in activity in the British private sector intensified in January, show the preliminary results of the S&P Global/CIPS survey published this morning.

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The ‘flash’ composite PMI index – which measures activity in both industry and services – thus fell back to 47.8 this month, against 49 in December, which corresponds to a low of two years.

The services PMI also fell to a 24-month low of 48 from 49.9 the previous month.

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The flash PMI for the manufacturing industry rose to 46.6 from 44.4 in December, setting a six-month high.

A rare reason for satisfaction with the survey, the S&P Global Market Intelligence teams behind the report evoke an ebb of inflationary tensions.

‘However, this is a disappointing start to the year for the UK, reflecting not only short-term elements such as the impact of strikes and soaring energy prices due to the war in Ukraine, but also the lingering consequences of more structural factors, such as labor shortages and Brexit-related trade issues, ”said Chris Williamson, chief economist at S&P Global Market Intelligence.

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