London-listed stocks ended the trading day upbeat, with the blue-chip FTSE 100 index 0.33% in the green on Monday, amid a slowdown in the expansion of the UK's private sector economy. S&P Global data indicates that the country's private sector economy continued its streak of expansion in September, albeit at a slower pace compared with the previous month.
The Flash UK PMI Composite Output Index came in at a two-month low of 52.9 in September, compared with 53.8 in August. The slowdown is reflected in the manufacturing sector, where the index decreased to a three-month low of 51.5 from 52.5, while the services sector also experienced a decline, falling to a two-month low of 52.8 from 53.7. “A slight cooling of output growth across manufacturing and services in September should not be seen as too concerning, as the survey data are still consistent with the economy growing at a rate approaching 0.3% in the third quarter, which aligns with the Bank of England's forecast,” commented S&P Global Market Intelligence Chief Business Economist Chris Williamson. Williamson further noted that services inflation in September 2024 eased to its lowest level since February 2021.
“The survey data therefore support the view that there is scope for interest rates to fall further in the closing months of 2024,” the economist added. In addition, the net balance of new orders in the UK plummeted to a 10-month low of -35 in September, down from -22 in the previous month, according to data from the Confederation of British Industry. On the corporate front, HSBC's France-based unit HSBC Continental Europe entered into an agreement to sell its private banking business in Germany to French lender BNP Paribas.
This transaction is anticipated to yield a gain for the seller upon completion in the second half of 2025, subject to certain conditions. The British lender's shares rose by 1.47% at closing..