UK economic system selecting up steam whereas Europe stalls
Skirting recession: S&P Global discovered ‘signs of renewed momentum’ within the UK
Britain is ready to keep away from recession however the downturn is deepening in Germany and France.
In a sequence of well being checks on European economies, S&P Global discovered ‘signs of renewed momentum’ within the UK.
But it additionally warned of a ‘sluggish start to the year’ in Germany and a ‘depressing’ image in France the place ‘the economy is kicking off 2024 on a slow note’.
James Smith, an economist at banking group ING, stated: ‘Unlike the eurozone, the UK is picking up steam.
‘This is another signal that the consensus among economists going into this year, which suggests the UK will under-perform most major European economies in 2024, looks a bit too gloomy.’
S&P Global stated its index of exercise within the UK non-public sector, the place scores above 50 present progress and scores beneath present decline, rose to a seven-month excessive of 52.5 in January.
Chris Williamson, an economist at S&P, stated it confirmed Britain was ‘skirting recession’. Germany clocked up 47.1 on the index– the weakest for 3 months – and France hit a four-month low of 44.2.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, which compiled the studies with S&P, stated that, having seen the German economic system shrink final 12 months, the replace pointed to ‘a continuation of the recession’.
On France, S&P stated: ‘France began the year with another marked month-on month reduction in private sector business activity. The downturn worsened in January.’
S&P stated the disaster within the Red Sea, the place assaults by Houthi rebels on ships have hit commerce, has harm Europe.
Signs of a UK restoration will probably be welcomed by the Tory management who hope tax cuts, falling inflation and decrease rates of interest will enhance the economic system forward of the election.
