Forex Flash: UK Service PMI disappoints again - ING
FXstreet.com (Barcelona) - The ING research and strategy team note that the UK Service sector PMI has come in at 50.2, down from 50.6 in October and weaker than the consensus reading of 51.0.
They note that this is the lowest reading since December 2010, with the new orders component falling below the break even 50 level. This follows a rise in the manufacturing PMI to 49.1 from 47.3 and a drop in the construction PMI to 49.3 from 50.9. As such, the survey compiler states that the composite of these reports actually rose to 50.2 from 49.6, which is effectively equivalent to economic stagnation in 4Q12.
Nonetheless they believe that with consumer confidence having risen and retail sales numbers seemingly doing ok, a small positive GDP reading of 0.1% or perhaps 0.2% QoQ could emerge.
However, that said the PMI reports underline the weak performance of the UK economy and offers further evidence that the Chancellor will acknowledge that his aim of seeing government debt fall as a proportion of GDP in 2015/16 will be missed.
They note that this is the lowest reading since December 2010, with the new orders component falling below the break even 50 level. This follows a rise in the manufacturing PMI to 49.1 from 47.3 and a drop in the construction PMI to 49.3 from 50.9. As such, the survey compiler states that the composite of these reports actually rose to 50.2 from 49.6, which is effectively equivalent to economic stagnation in 4Q12.
Nonetheless they believe that with consumer confidence having risen and retail sales numbers seemingly doing ok, a small positive GDP reading of 0.1% or perhaps 0.2% QoQ could emerge.
However, that said the PMI reports underline the weak performance of the UK economy and offers further evidence that the Chancellor will acknowledge that his aim of seeing government debt fall as a proportion of GDP in 2015/16 will be missed.
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