Latest data released by Markit/CIPS - 5 August 2019
- Prior 50.2
- Composite PMI 50.7 vs 49.8 expected
- Prior 49.7
That's a decent beat with the services print hitting a nine-month high and the composite reading moves back into expansion territory after contracting back in June. The release is providing a very minor reprieve for the pound with cable back up to 1.2130 from 1.2110 levels before this.
Markit notes that despite the improvement, the headline reading stands well below its long-run average of 54.9 and says that the UK economy remains at risk of stagnating in Q3. Adding that "the overall picture is one of an economy that is only just managing to skirt recession, with July's performance among the worst since the height of the financial crisis".
That pretty much sums it up. All this does is provide a bit-part relief but it shouldn't extend beyond that. There isn't much to be optimistic about so expect rallies to still be sold into as Brexit uncertainty continues to reign.
