- Prior 58.6
- New orders 57 vs 59 prior
- Composite 55.2 vs 57.4 exp. Prior 57.6
Headline drops to the lowest since May 2013 and new orders to the lowest since Apr 2013. Not a good reading and GBP/USD has fallen under 1.5200 to 1.5195
“Weaker rates of expansion were seen in services, manufacturing and construction in December, taking the overall pace of economic growth to the weakest for just over a year-and-a-half. The surveys suggest the economy grew by 0.5% in the fourth quarter, and the loss of momentum towards the year end will no doubt fuel worries that the upturn is too fragile to withstand higher interest rates.” Says Chris Williamson of Markit
We saw signs of a pick up from the H2 slowdown in the data just before the year ended but this result will likely have GDP estimates marked downwards. If we see the trend continuing into the new year then that will get alarm bells ringing and will definitely stoke up the political beehive.
UK services PMI 06 01 2015
