LONDON - The United Kingdom's economic outlook received a boost today as data revealed the Manufacturing Purchasing Managers' Index (PMI) for November rose to 46.7, climbing from October's reading of 44.8 and surpassing analyst predictions of 45.0. Additionally, the Services PMI reached a four-month high at 50.5, edging over the threshold that separates growth from contraction and above October's figure of 49.5 and market expectations.
Tim Moore, Economics Director, commented on the improvement in the UK's economic conditions, noting that growth in the service sector has halted its previous decline and manufacturing output reductions have lessened. Moore attributed these positive developments to a pause in interest rate hikes and a slowdown in inflation growth. He suggested these factors could lead to a broadly flat GDP for the UK in the fourth quarter.
Following the announcement of the PMI data, there was a notable response in the forex market. The British pound surged to a high of 1.2573 against the US dollar but later stabilized around 1.2540, marking a modest daily gain of 0.42%. This movement reflects investors' reactions to the stronger-than-expected economic indicators, which have provided some optimism regarding the UK's economic resilience amidst global challenges.
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