Latest data released by Markit/CIPS - 5 February 2019
- Prior 51.2
- Composite PMI 50.3 vs 51.4 expected
- Prior 51.4
With the composite reading also slipping close to 50.0, the UK economy is basically flat-lined at the moment thanks to Brexit uncertainty. The services print here is the lowest since July 2016 while the composite reading is the weakest since the same period.
Markit notes that the PMI prints here is consistent with a 'stagnating' UK economy in Q1 2019 outlook.
It took a while for the pound to respond but it is now falling a bit more from 1.3040 to 1.3020 levels on the back of the release here. Nonetheless, it's still all about Brexit right now so any further drop below 1.3000 for me would be more related to pricing in no-deal odds. Economic data remains secondary in the current pound landscape.
