The UK economy faced significant headwinds in 2024, marked by stagnation and subdued growth. December’s Purchasing Managers’ Index (“PMI”) data revealed the weakest private sector performance since October 2023, with composite PMI at 50.4 and a sharp decline in new orders. Rising payroll costs and declining demand drove the steepest fall in employment since January 2021, while business confidence fell to a two-year low following tax increases in the Autumn Budget. Although KPMG raised its 2025 Gross Domestic Product (“GDP”) forecast to 1.7% due to expansionary fiscal policy, 2024 growth remained modest at 0.7%, with inflation averaging persistently high levels. Despite signals of gradual rate cuts from the Bank of England, bond market volatility added uncertainty to the outlook.

Stocks featured:

Clarksons, Greggs and Just Group

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