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  • Sharpest fall in new orders since January 2021 as cost of living pressures continue to hit the UK economy

    From pmi.spglobal.com

    UK private sector firms signalled another reduction in business activity during November, which stretched the current period of decline to four months. New orders meanwhile decreased at the fastest pace for almost two years as squeezed client budgets continued to hit demand in both the manufacturing and service sectors. On a more positive note, business expectations for the year ahead rebounded from the 30-month low seen in October. Many survey respondents commented on recession worries and increasingly challenging economic conditions, but there were fewer comments citing domestic political uncertainty. The headline ... (full story)

Quoting Vancarbon
It's amazing how derivatives control the stock market . To look at it from the Ftse100 point of view you would think we were in boom times . The markets can stay detached from reality only for so long Energy costs and petrol/transportation costs plus wage demands/strikes are going to bring a sharp correction to the markets in the UK
thats exactly why the FTSE has been rallying imo. Its heavily weighted with energy/commodity/medical companies. good place for pension funds to hide out in commodity induced recession.
Quoting Vancarbon
{quote} No disrespect , but I think you need to learn about the correlation between recessions and commodities . https://www.project-syndicate.org/co...rankel-2022-08 BTW they won't say it out loud but Central bankers know that's the only way to make inflation fall to anywhere near their target level . It would have to be a deep recession to bring substantial falls in entrenched inflation There's another steep leg down coming
This is a commodity induced recession. if you think recession will send commodity prices down hence energy cost will go down sharply and theres no need for high wage demand. hence the economy goes back to normal.
Quoting Vancarbon
{quote} No , not at all . It's an excess liquidity induced recession as the stimulus ( QE ) is not supporting the market and assets . Supply/demand always wins .
Exactly my point. there is not enough supply of energy commodity even when we get a recession. it alone wont send energy prices down. which is why FTSE is so attractive at 6800 and has been rallying like crazy. thats my rational of it anyways.
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