Wed. Oct 21st, 2020

UK economy ‘shrinking’ as factories and services companies struggle – business live

Rolling coverage of the latest economic and financial news

Earlier:

10.03am GMT

The City has responded to the grim PMI survey by….. driving shares even higher.

The FTSE 100 is now up 157 points, or 2.1%, and on track for its best day since June 29 2016.

9.56am GMT

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, blames anxiety over Brexit and the general election for the slump in business activity this month.

“The continuing Brexit-related aversion to investment and a pre-election lack of consumer confidence led to the fastest fall in business activity in December since July 2016….

The biggest shock came in the form of the worst output performance from the manufacturing sector since July 2012. A lack of new orders and the unravelling of pre-Brexit inventories hampered progress and supply chain managers’ purchasing dropped at the fastest pace since 2009 in the absence of a pipeline of work ready and waiting.

The Brexit path is still littered with obstacles and the need for strong negotiation skills for a future EU agreement will be paramount to avoid this downward slide becoming the economic landscape for an extended period.”

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