Details of the May 2015 UK services PMI data report 3 June 2015
- Prior 59.5
- New orders 57.4 v s59.0 prior
- Composite 55.8 vs 58.4 exp. Prior 58.4
- New orders 56.8 vs 58.0 prior
That's the biggest slowdown in just under 4 years. Input prices are at an 8 month high but companies have increased prices to counter that.
GBPUSD has been spanked down to a 1.5260 low and has recovered some 10 pips so far. It's a crappy report and it won't be looked at positively for GDP
Employment is still up but the growth rate is at the lowest for 5 months
"Recent weakness in manufacturing and construction has spread to services. Overall growth in May across all three sectors was the lowest since December and the second-weakest for two years. The surveys point to GDP growing at a quarterly
rate of just 0.4% in May, raising doubts about the ability of the economy to rebound convincingly from
the weakness seen at the start of the year. The lacklustre growth picture will be a concern to
policymakers and effectively kills off the chances of any imminent hiking of interest rates by the Bank of England.Rate hikes later this year should not be ruled out: there are signs that the disappointing rate of expansion is only temporary, linked to uncertainty
surrounding the general election, and the surveys point to rising inflationary pressures as well as a further tightening of the labour market." Says Chris Williamson at Markit
UK services PMI
