- UK Manufacturing PMI rose to 45.2 in October, above expectations of 45.0.
- Services PMI in the UK fell to 49.2 in October, a downside surprise.
- GBP/USD is recapturing bids above 1.2250 on mixed UK business PMIs.
The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) rose to 45.2 in October versus the 45.0 expected and, 44.3 - September’s final readout.
Meanwhile, the Preliminary UK Services Business Activity Index reached a nine-month low of 49.2 in October, compared with a 49.3 final print for September and the 49.5 expected figure.
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said: “The UK economy continued to skirt with recession in October, as the increased cost of living, higher interest rates and falling exports were widely blamed on a third month of falling output.”
“The overall pace of decline remains only modest, signalling a mere 0.1% quarterly rate of GDP decline, but gloom about the outlook has intensified in the uncertain economic climate, boding ill for output in the coming months. A recession, albeit only mild at present, cannot be ruled out,” Williamson added.
FX implications
At the press time, GBP/USD is back on the bids near 1.2260 despite the mixed UK data, adding 0.09% so far.
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