The all-sector PMI index for the UK for the month of December showed that the UK economy likely managed to end the fourth quarter of the year on a resilient note.

Data from IHS Markit released over the week showed that the all-sector PMI index stood at 54.7 for the month of December.

The PMI for December indicated that the UK economy might have expanded at an average pace of 0.4%, consistent with the BoE’s views.

However, digging deeper into the data, the PMI across the different sectors showed a mixed bag.

Services sector managed to rebound during the month and expanded at the fastest pace since the past eight months.

This was however not the case with the manufacturing and construction sectors.

Data showed that manufacturing PMI was slightly weaker missing estimates. Manufacturing activity was seen at 56.3 in December.

However, in November, the manufacturing PMI hit a 51-month high at 58.2. Thus, a moderation in the sector was widely expected.

The construction PMI came out slightly weaker as well at 52.2.

This was down from November’s PMI reading of 53.1. Despite the apparent weakness in the sector data showed that new order volumes had jumped.

The main underlining factor in the PMI report was that consumer prices had continued to rise.

This suggests that consumer prices in the UK might have remained elevated in the month of December 2017.