- Prior 60.0
- Expectations 73.5 vs 71.1 in Nov. Highest since March 2010
- Composite falls to 59.5 vs 60.4 prior
Pound taking a hit down to 1.6343 from 1.6370. EUR/GBP up to 0.8324.
New business dropped back slightly but still stays up around 16 year highs.
UK services new biz 06 01 2014
“The UK services sector continues to hit the high notes as business confidence surged to its highest level in nearly 4 years. The average new business growth rate in the final quarter of 2013 was the best in the survey’s history, suggesting a very bright outlook for 2014. The stronger positive outlook also offers a platform for investment and expansion in new products and marketing, sustaining the continued broad based recovery in the New Year.” Said David Noble of CIPS
Considering the gains services made in 2013 we shouldn’t turn into doomsayers just yet. Our strongest component of GDP remains bouyant and as long as we don’t really start slipping back towards the 50 mark then we’ll be ok. I’ve been saying for a while that we’ll probably see a period of consolidation in the numbers.
Markit also suggests that the PMI points to Q4 GDP above 0.8% q/q and 2013 growth of 1.9%.