UK economic recovery loses momentum as consumer demand weakens – business live

Rolling coverage of the latest economic and financial news, as nervous investors push the US dollar to a two-month highLatest: UK growth is weakening this monthUK composite PMI drops to 55.7 from 59.1Eurozone business growth fizzling outIntroduction: Pound and euro at two-month low against strong dollarBofA: UK economy to stagnate 10.37am BST Kallum Pickering of Berenberg bank has helpfully plotted today’s European PMI surveys together, showing that the UK outpaced Germany, France and the wider eurozone this month.The rise in infections and the new restrictions which many countries are imposing to contain the spread of COVID-19 are taking a toll on service sectors across Europe. As a result, the balance of risks to our call for a 2.2% q-q gain in Eurozone GDP in Q4 is tilted heavily to the downside.Six months ago, demand in the US plunged and many supply chains with China were disrupted. Now, the US is recovering robustly and Chinese problems have largely faded. This should underpin sustained gains in the production and international trade in goods.While Brexit uncertainties are more acute than they were earlier this year, they are more familiar and less pronounced than in late 2019. 10.24am BST European stock markets have actually pushed higher since this morning’s worst-than-expected PMI surveys landed.Britain’s FTSE 100 is now up 125 points, or over 2%, at 5954 points - meaning it’s recovered much of Monday’s slump. All the major European markets are solidly green too:⚠️STOCKS IN EUROPE JUMP ACROSS THE CONTINENT AS DISMAL PMI DATA RENEWS STIMULUS HOPES- STOXX 50 ⬆️1.8%- DAX ⬆️1.7%- FTSE 100 ⬆️2.2%- CAC 40 ⬆️2%-AEX ⬆️1.7%- FTSE MIB ⬆️1.7%- IBEX 35 ⬆️1.9%- BIST 100 ⬆️0.7%https://t.co/m3w95UBKOK$DAX $CAC $SPY $QQQ pic.twitter.com/siVXN7eGcc Continue reading... https://www.theguardian.com/business/live/2020/sep/23/uk-eurozone-factories-services-markets-covid-19-ftse-pound-business-live #eurozone #business #stock_markets #manufacturing_data #economics #ftse