Latest data released by Markit/CIPS - 6 January 2020
- Composite PMI 49.3 vs 48.5 prelim
The preliminary report can be found here. That is a decent revision higher but it doesn't take away from the fact that services activity remains rather sluggish towards the end of last year - but at least it is not as bad as initially expected.
All that said, this should still point towards a mild contraction in UK economic growth and we'll have to see how Q1 2020 performs now post-election and with some Brexit uncertainty reduced for the time being. Markit notes that:
"With manufacturing and construction output also subdued in December, the latest PMI surveys collectively signal an overall stagnation of the UK economy at the end of 2019.
However, the latest UK service sector figures are an improvement on those seen in November and strike a slightly more positive tone than the earlier 'flash' PMI for December. The final IHS Markit/CIPS UK Services data includes survey responses from after the election, unlike the earlier flash estimate.
It is notable that the forward-looking business expectations index is now the highest since September 2018 and comfortably above its 'flash' reading for December. The modest rebound in new work provides another signal that business conditions should begin to improve in the coming months, helped by a boost to business sentiment from greater Brexit clarity and a more predictable political landscape."
Cable is still resting at session highs now of 1.3127 but price needs to break back above the 100-hour MA @ 1.3151 for added momentum to the upside.
