Latest data released by Markit/CIPS - 21 February 2020
- Prior 53.9
- Manufacturing PMI 51.9 vs 49.7 expected
- Prior 50.0
- Composite PMI 53.3 vs 52.8 expected
- Prior 53.3
On the balance of things, the headlines suggest some steadiness in UK economic activity after the election. The services sector sees a mild drop but manufacturing improved, leading the overall composite reading to stay near similar levels as seen in January.
Looking at the details, Markit notes that supply chain disruptions are emerging as a result of the coronavirus outbreak but they still forecast UK Q1 GDP to be at +0.2% q/q.
I don't think this will give the pound much to work with on the day but after the shift from the euro area PMI readings and how that is impacting the dollar, perhaps buyers can start to look for some upside potential towards 1.2950 next if the mood stays this way.
