October 2018 UK Markit/CIPS services PMI 5 November 2018
- Prior 53.9
- Composite 52.1 vs 53.4 exp. Prior 54.1
- Expectations 63.1 vs 66.4 prior. Lowest since Jul 2016
- Moderate rise in business activity during October
- New work increases at slowest pace since July 2016
- Strong input cost inflation continues
Markit says it points to GDP growth of 0.2%
GBPUSD hits a low of 1.2970 as the wrose data adds to the ebbing positivity from Brexit headlines
Says Chris Williamson of Markit;
“The disappointing server sector numbers bring mounting evidence that Brexit worries are taking an increasing toll on the economy. Combined with the manufacturing and construction surveys, the October services PMI points to the economy growing at a quarterly rate of just 0.2%, setting the scene for GDP growth to weaken sharply in the fourth quarter.
“However, while it is not surprising to see that Brexit uncertainties are increasingly undermining business activity at this stage of the negotiations, the survey responses also suggest that the economy is facing other headwinds, including a broader global slowdown, trade wars, heightened geopolitical uncertainty and tightening financial market conditions.
“It therefore remains unclear as to the extent to which Brexit worries are exacerbating or obfuscating a more broad-based slowing of the economy, which would have important implications for policymaking.”