Details of the July 2015 UK services PMI data report 5 August 2015
- Prior 58.5
- New orders 58.6 vs 57.2
- Composite 56.6 vs 56.9 exp. Prior 57.4
Misses the beat but new orders saves it from being a bad report
Markit pins Q3 GDP at about 0.6% on this and the other UK PMI numbers. Employment falls to 53.8 vs 56.0 prior, lowest since March last year
GBPUSD perhaps surprisingly calm in the face of a worse number, particularly with the BOE tomorrow. We've been to 1.5580from 1.5610
In the report Markit note that financial services had their strongest month since 2013. Business services countered that with the weakest growth in 3 years
Markit's Chris Williamson says the numbers don't bode well for rate hikes;
"Despite the dip in the PMI in July, the service sector continues to act as the main driver of
economic growth. The survey data point to GDP growth merely easing from 0.7% in the second
quarter to a still-impressive 0.6% at the start of the third quarter, which will do little to deter hawks at the Bank of England from voting for higher interest
rates. However, the majority of MPC members will most likely see no need to rush into hiking rates any time soon. The doves will view the recent signs of cooling economic growth and slower job creation, also noting that inflation is currently zero and shows few signs of lifting higher due to the strong pound and falling oil prices."
UK services PMI
