The number of UK sectors reporting falling output rose to eleven in December 2024, up from eight in November, and the highest number since September 2023, according to data from the latest Lloyds UK Sector Tracker. The number of sectors with growing demand was one less than in November (four) and came as the number of businesses that said inflation was causing them to anticipate lower activity levels in 2025 rose to a 26-month high (10.9 times the long-run average). The only sectors to report output growth in December were software services (56.7), real estate (53.3) and financial services (51.9). As measured by new orders, these sectors were also the only ones to report demand growth. A reading on the Tracker above 50.0 indicates expansion, while a reading below 50.0 indicates contraction. To read Lloyds’ news release, go to https://www.lloydsbankinggroup.com/media/press-releases/2025/lloyds-bank-2025/number-of-uk-sectors-with-falling-output-increases.html.