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UK manufacturing PMI drops to 47 as economic pressures mount
The UK's Manufacturing PMI slipped to 47.0 in December, down from 48.0 in November, marking the third straight month of contraction and the lowest sentiment in two years.
UK Manufacturing PMI finalized at 47.0 in December, signaling ongoing contraction.
Oil prices surged, with WTI crude reaching $72.8 per barrel on optimism over China’s recovery and reduced US crude stockpiles.
The Dollar Index climbed to 25-month high.
UK manufacturing PMI drops to 47
The UK’s Manufacturing PMI fell to 47.0 in December, down from 48.0 in November, marking the third consecutive month of contraction. Persistent domestic and global pressures have weighed on the sector, driving the sharpest production decline in nearly a year.
Small and medium-sized enterprises bore the brunt of the downturn, as labor market pressures mounted. December saw the steepest job cuts since February, with firms restructuring ahead of expected increases in National Insurance and minimum wages in 2025. Export sales also weakened, dragged down by reduced demand from Europe, Asia, and the United States.
Oil prices surge as optimism grows
WTI crude oil futures climbed to $72.8 per barrel on Thursday, the highest level since November. The rise was fueled by optimism surrounding China’s economic recovery after President Xi Jinping expressed confidence in growth during his New Year address. China’s manufacturing sector extended its modest expansion for the third straight month, further lifting demand expectations.
Adding to the bullish sentiment, a report from the American Petroleum Institute showed a 1.4 million-barrel drop in US crude stockpiles last week. If confirmed by official data, this would mark the sixth consecutive week of inventory reductions.
Dollar index hits 25-month high
The Dollar Index (DXY) reached a 25-month high of 108.59, gaining 2.04% over the past four weeks and 5.9% over the past year. The greenback’s strength reflects sustained demand as markets eye US monetary policy developments heading into 2025.
