EUR/USD
1.15938
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Gold
4416.70
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89.978
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USD/JPY
158.666
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1.33948
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212.536
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Real-time News
On March 24th, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, stated, "The war in the Middle East impacted the UK economy in March, causing economic growth to stagnate while inflation surged." Output growth in both manufacturing and services has slowed to an extremely sluggish level, with businesses directly blaming events in the Middle East for factors including heightened customer risk aversion, soaring price pressures, rising interest rates, and disruptions to travel and supply chains. Inflationary pressures have risen sharply due to rising energy prices and supply chain disruptions. The acceleration in manufacturing cost increases has been particularly severe, the most dramatic since the "Black Wednesday" devaluation of the pound in 1992. The overall economic and inflationary impact depends not only on the duration of the war but also on the length of disruptions to energy markets and shipping, and the March PMI data clearly indicates that downside risks to economic growth and upside risks to inflation are already present. The Bank of England faces a challenging period, needing to weigh these risks in policymaking, striving to curb a continued surge in inflation while ensuring that a tough interest rate outlook does not exacerbate the risk of recession.The UKs preliminary composite PMI for March was 51, below the expected 52.9 and the previous reading of 53.7.The UKs preliminary services PMI for March was 51.2, below the expected 53 and the previous reading of 53.9.The UKs preliminary manufacturing PMI for March was 51.4, below the expected 50.1 and the previous reading of 51.7.The preliminary readings of the UKs March services and manufacturing PMIs will be released in ten minutes.
