- Prior 58.6
- Employment 58.8 vs 56.2
- Composite 58.0 vs 58.6 exp. Prior 59.0
- Comp employment 58.2 vs 55.9 prior
- Markit analysis expects Q2 GDP at 0.8% q/q
- New business rose to the highest in 6 months and above 60 (don’t know the exact number as they don’t print it anymore on the release)
GBP/USD dumps to support at 1.7140 then through to 1.7133. The employment component seems to be the saving grace.
Respondents saw higher operating costs in June and attributed them to salaries and wage costs, prices were generally seen higher too. There was some hesitation in passing higher costs onto customers which means businesses are still wary about overall business conditions.
“A hiring spree among the UK’s services firms arrived in response to the sharpest increase in new
business in six months. As levels of activity surged higher, along with strong customer demand and favourable market conditions, job creation accelerated to a record survey high in June. With optimism increasing and momentum continuing to build, there is no evidence to suggest that the
speed in the recovery is about to slow down anytime soon.” Said David Noble at CIPS
The headline number masks some good numbers in the components so I don’t expect the pound to remain offered for long, though it is worrying that the trend since October has been down.
This is where we need the pick up from overseas to help sustain the recovery.
UK services PMI 03 07 2014
