UK services PMI drops to 50.2 in June vs. 51.0 expected (GBP keeps losses)
|The UK services sector activity slowed down its pace of expansion in the month of June, the latest survey report from Markit Economics showed this Wednesday.
The headline seasonally adjusted IHS Markit/CIPS UK Services PMI Index fell to 50.2 in June vs. 51.0 booked in the previous month while missing expectations (51.0 expected).
Key Points:
Business activity rises only fractionally in June.
Jobs growth picks up, despite weak demand.
Strong increase in input costs.
Chris Williamson, Chief Business Economist at IHS Markit, which compiles the survey, noted:
"The near-stagnation of the services sector in June is one of the worst performances seen over the past decade and comes on the heels of steep declines in both manufacturing and construction. Collectively, the PMI surveys indicate that the economy has slipped into contraction for the first time since July 2016, suffering the second-steepest fall in output since the global financial crisis in April 2009. “
"The June reading rounds off a second quarter for which the surveys point to a 0.1% contraction of GDP.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.