2019.12.1608:55:00UTC+00UK Composite PMI At 41-Month Low

The UK private sector activity contracted the most since mid-2016, flash survey results from IHS Markit and Chartered Institute of Procurement & Supply showed Monday.

The composite output index fell to 48.5 in December from 49.3 in November. The rate of decline was the fastest since July 2016. Economists had forecast the score to rise to 49.5.

The latest decline was the second largest recorded over the past decade, and increases the likelihood that the economy contracted slightly in the fourth quarter as Brexit-related uncertainty intensified in the lead up to the general election, Chris Williamson, chief business economist at IHS Markit, said.

December data pointed to lower volumes of service sector output and a much sharper drop in manufacturing production.

The services Purchasing Managers' Index came in at 49.0, down from 49.3 in the previous month and the forecast of 49.5.

Likewise, the manufacturing PMI declined unexpectedly to 47.4 from 48.9 a month ago. The expected level was 49.2.