The bond market is gaining appeal, with anticipated rate cuts expected to soften the yield curve’s short end. While ten-year UK yields offer a premium over inflation, British debt is still seen as less secure. The yield curve is projected to normalize, improving prospects for long-term bonds. Key Points Economic weakness continues into 2025 Uncertainty […]

UK economic indicators continue to show persistent fragility. The manufacturing PMI remains on a downward trend at 44.6, signaling difficult times ahead. However, the services PMI has rebounded to 53.2, suggesting potential support for overall GDP. The absence of the public sector in these measurements raises concerns that ongoing budget cuts could further challenge growth […]

The UK economy unexpectedly contracted by -0.1% in January, a notable reversal after a positive December. This decline marks the fourth monthly contraction in seven months, signaling a continued trend of economic uncertainty. The drop in manufacturing and construction output was partly due to difficult weather conditions, but these sectors are expected to rebound as […]