UK Markit Services PMI September 2017 53.6 vs 53.2 exp

by | October 4th, 2017, 08:30:05 | Economic Data, UK

UK economics

September 2017 UK Markit services PMI 04 October 2017

  • Prior 53.2
  • Nerw orders 53.3 vs 54.2 prior. Lowest since Aug 2016
  • Composite 56.7 vs 56.7 exp. Prior 54.0
  • Input costs rise. Stand at a 7 month high.
  • Prices charged rises at the fastest pace since Apr
  • Firms reported a decline in optimism for their year ahead

GBPUSD has bounded up to 1.3277 from 1.3242 on the biggest component data of GDP. It’s not a massive win for the pound but it’s a better result than we’ve seen from the construction and manufacturing PMI’s.

There’s some key news on wages in the data;

Higher operating expenses were linked to rising food, energy and fuel bills, alongside increased prices for imported items and greater staff salaries
That’s a potential big plus for the BOE and their hunt for a hike.
Markit’s Chris Williamson had some warning words for the BOE;
“The rise in price pressures will pour further fuel on expectations that the Bank of England will soon follow-up on its increasingly hawkish rhetoric and hike interest rates. However, the decision is likely to be a difficult one, as the waning of the all-sector PMI in September pushes the surveys slightly further into territory that would normally be associated with the central bank loosening rather than tightening policy.”
Ryan Littlestone
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