Commenting on the PMI business survey data released this morning, Melanie Baker, senior economist at Royal London Asset Management, said:
“Today’s figures suggest the UK is looking at a stagnant end to the year. A services PMI of 50.0 is still weak by UK standards and a composite PMI at 50.0 is consistent with close to zero growth in the UK economy.
“Actual GDP growth is likely to be stronger than that in Q3 after decent monthly output figures earlier this summer.
“It is important to note the survey period was 11-29th October, so the responses will largely have been received after the optimism generated from the Varadkar-Johnson meeting and subsequent progress towards a deal… but before MPs voted for a general election.”
About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £148 billion of assets and employs 121 investment professionals as at 31 December 2020. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
For professional clients only, not suitable for retail investors.
Issued by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.
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