Blackfinch Spring VCT PLC has provided a weekly market update, summarizing global events. In the UK, annual shop price inflation slowed to 4.3% in November, the slowest increase since June 2022. UK house prices increased by 0.2% month-on-month in November, surprising economists who expected a fall. UK residential property transactions in October were 3% lower than in September and 21% lower than October 2022. The UK manufacturing Purchasing Managers' Index (PMI) improved from 44.8 in October to 47.2 in November, indicating that activity was still contracting.
In North America, the US economy expanded at a stronger than expected pace in the third quarter, with real GDP increasing at an annual rate of 5.2%. However, S&P Global's US manufacturing PMI survey contracted to 49.4 in November, indicating a deterioration in operating conditions. The US Conference Board's Consumer Confidence Index increased from 99.1 in October to 102.0 in November.
In Europe, the Eurozone's annual rate of inflation rose by 2.4% in the 12 months to November, down from 2.9% in October. Core CPI inflation declined to 3.6% in November, giving investors insight into underlying inflationary pressures. The Eurozone's manufacturing PMI increased to 44.2 in November, suggesting a slowdown in the decline of output and new orders.
In global news, the price of gold reached a record high of $2111.39, as investors turned to safe haven assets on hopes of interest rate cuts in 2024.
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