The pound rebounds against the dollar despite new signs that the UK is already in recession
The pound hit its highest level against the dollar in three months despite new signs that the UK is already in recession.
The pound climbed as much as two cents to $1.2080, its highest level since August 17. It also rose by one cent to €1.1643 against the euro.
This is despite a business survey showing the economy contracted for a fourth consecutive month in November.
Recovery: The pound climbed two cents to $1.2080, its highest level since August 17
This puts Britain on track for a 0.4% fall in GDP in the fourth quarter, which – after a 0.2% contraction in the third quarter – would mean Britain is in recession.
Chris Williamson, chief economist at S&P Global, who conducted the survey, said the business climate “remains among the bleakest in the past quarter century” amid the cost of living crisis, war in Ukraine and political chaos.
Still, the reading of 48.3 in the Purchasing Managers’ Index (PMI) survey – where the 50 mark separates growth from decline – was a bit better than expected.