British Business Activity Hits Nine Month High as National Economy Shows First Signs of Recovery Since November Budget

The economy of the United Kingdom GBrecorded its first sustained improvement in key indicators during January 2025, suggesting that policy uncertainty for employers and households has begun to ease following the November budget. Data from the S&P Global Purchasing Managers Index showed that businesses achieved their strongest month of activity since April 2024, marking the best performance since before keir starmer became prime minister in July 2024. This uptick was mirrored by the GfK Consumer Confidence Index, which climbed to its highest level since August 2024.

Broad-based growth across various sectors supported the recovery as official data revealed that retail sales volumes in the UK Retail Sector rose in December at the fastest annual pace since April. The UK Manufacturing Sector saw factory order books expand at their quickest rate in almost four years, and November GDP growth of 0.3% exceeded expectations to mark the strongest monthly rise since June. Output during that period was significantly boosted by stronger-than-expected activity in the UK Services Sector and the return to full production at Jaguar Land Rover after a cyberattack. Despite these gains, investors monitoring the FTSE 100 FTSE noted that the S&P Global Purchasing Managers Index remains below its pre-COVID average under the administration of keir starmer.