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UK Manufacturing Faces Turbulent Times Amid Trade Challenges

British manufacturers are grappling with a challenging economic landscape as trade uncertainties and rising costs weigh heavily on the sector. The S&P Global UK Purchasing Managers' Index (PMI) for manufacturing fell to 44.9 in March, marking its lowest point since October 2023. This decline reflects a contraction in activity, with new export orders dropping at the fastest rate since August 2023. The downturn has been attributed to multiple factors, including the threat of tariffs from the United States, increased payroll taxes, and a rise in the national minimum wage. Smaller manufacturers have been hit particularly hard, with many reporting a decline in new orders and reduced business optimism. Only 44% of manufacturers expect output to increase over the coming year, a significant drop from 56% in the previous month. Geopolitical tensions and economic slowdowns in key markets such as the US and Europe have further compounded the challenges. Despite these headwinds, the servic...
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U.S. Markets Poised for Downturn Amid Fed Rate-Cut Speculation; FedEx Forecasts Worry Investors

 

U.S. stock index futures inched lower on Wednesday as investors took a breather from a rally that was sparked by the Federal Reserve’s likely pivot to a dovish policy, while FedEx tumbled after issuing a grim outlook.

All the three main indexes have advanced over 2% since the Fed’s Dec. 13 verdict where policymakers projected lower policy rates by the end of 2024, with the blue-chips Dow hitting record highs every other day and the S&P 500 within arm’s reach of its highest closing levels since January 2022.

Since then central bank officials have attempted to keep investor euphoria in check, the latest being Chicago Fed President Austan Goolsbee who said further progress on beating back inflation will be the decisive factor in any central bank decision next year to reduce interest rates.

Still, traders expect the Fed to ease credit conditions by over 125 basis points by September next year, with a 71.1% chance that the first 25 basis point cut could come in as early as March.

Meanwhile, FedEx slid 9.9% in trading before the bell after the global delivery firm cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts’ targets, as its largest Express business saw demand from the U.S. Postal Service drop.

The U.S. stock index futures are set for a lower open on Wednesday as investors take a breather from a rally that was sparked by the Federal Reserve’s likely pivot to a dovish policy. The blue-chips Dow has hit record highs every other day and the S&P 500 is within arm’s reach of its highest closing levels since January 2022. However, central bank officials have attempted to keep investor euphoria in check, with further progress on beating back inflation being the decisive factor in any central bank decision next year to reduce interest rates. Meanwhile, FedEx slid 9.9% in trading before the bell after the global delivery firm cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts’ targets, as its largest Express business saw demand from the U.S. Postal Service drop.

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