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
“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.”