Pound bounces back against dollar despite UK recession fears
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The pound is bouncing back against the dollar despite further signs that the UK is already in recession
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The pound rose to its highest level against the dollar in three months, despite further signs that the UK is already in recession.
Sterling climbed as much as two cents to $1.2080, its strongest since August 17. It also rose by one cent to β¬1.1643 against the euro.
This despite a business survey that showed that the economy contracted for the fourth month in a row in November.
Recovering: Sterling climbed as much as two cents to $1.2080, strongest since Aug. 17
It puts Britain on track for a 0.4% drop in GDP for the fourth quarter, which β after contracting 0.2% in the third quarter β would mean Britain is in recession.
Chris Williamson, chief business economist at S&P Global, who conducted the survey, said business sentiment “remains among the most dismal in the past quarter century” amid the cost of living crisis, the war in Ukraine and the political chaos.
Still, the reading of 48.3 in the Purchasing Managers’ Index (PMI) survey β where the 50 mark separates growth from decline β was slightly better than expected.