‘Dire’ figures for British manufacturing PMI (Purchasing Manager’s Index) weighed down on London stocks yesterday, with the FTSE 100 falling 0.61% and the FTSE 250 down by 0.99%.
The index, a key economic indicator for the sector, fell to 46.0 points, well below expectations of 51.1, and analysts warned that the UK’s private sector is approaching a ‘state of stagnation’ amid soaring inflation.
Daniel Mahoney, UK economist at Handelsbanken, said, “Given the manufacturing sector is typically more energy-intensive than the service sector, rapidly rising energy costs will also undoubtedly serve to weigh down on the sector in the coming months.”
Energy firms rise as crude bounces
Brent crude prices rose to $97.34 from $93.26 late on Monday, further adding to inflation pressures.
Energy stocks rose in the wake of the news, which was triggered by output warnings from Saudi Arabia. Gulf Keystone (GB:GKP) rose by 6.75% and Hunting PLC (GB:HTG) rose 6.3%.
CMC Markets chief market analyst Michael Hewson said, “The rebound in the oil price is helping to underpin the energy sector with Shell and BP edging higher.”
British business headlines today
So what should be done to limit the fallout from the energy bill explosion? (Daily Mail)
Shielding UK families from energy bill crisis forecast to cost £100 billion (FT)
Energy crisis ‘will destroy viable firms’ (The Times)
