Private‑Sector Activity Slides to a Two‑Year Low
Why the Economy’s Feeling So Down‑beat
When the U.S. President rolled out tariffs, the ripple effect hurt overseas sales hard—think of it as a giant “boom” that turned export orders into a shriveled punch‑line.
Key Numbers You’ll Want to Keep In Mind
The latest S&P Global Flash UK Composite PMI flashed at 48.2 for April. For those who know the drill, over 50 means the economy is sprouting, while below means it’s struggling to keep its roots.
What the Economists are Saying
- Chris Williamson, the chief business economist at S&P Global, warned that exports are hitting a low that feels like a ghost from the pandemic era.
- He added that rising staff costs—thanks to new National Insurance and minimum‑wage rules—are piling extra pressure on firms.
- Projected output drop in April and a slump in confidence are fueling concerns about the short‑term health of the economy.
- This combination might push the Bank of England to consider lowering interest rates again in May.
Takeaway: It’s Not a Walk‑in‑Garden
Businesses are facing a double‑whammy: shrinking orders abroad and higher payrolls at home. The bank, meanwhile, is watching the trend closely, ready to step in if things look downright grim.
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