UK Economy Stagnates Amid Stagflation Concerns
* Composite purchasing manager index (PMI) indicates ongoing weakness, with private sector job losses reaching a post-pandemic high.
* Cost pressures accelerate at the fastest pace since Q2 2023, signaling a "stagflationary environment."
* Consumer confidence drops to a one-year low, adding to business pessimism caused by tax increases and economic headwinds.
* Despite PMI edging up to 50.9, indicating a marginal expansion, growth remains fragile with expectations falling to their lowest since Truss' premiership.
* Pound rises 0.6%, while gilt yields increase, reflecting concerns about the economic outlook.
* Economists anticipate a central bank rate cut in February to mitigate the impact of slowing growth and rising inflation.
* Growth decelerated significantly in H2 2024, with the economy stagnant in Q3 and a flat Q4 expected due to weak business and consumer sentiment.
* Amidst economic challenges, firms continue to shed jobs, indicating growing pessimism about business prospects.