UK Markit/CIPS Oct services PMI data now out 3 Nov
- 53.6 prev
- composite 55.8 vs 53.8 exp vs 54.1
- Marked and accelerated rise in service sector output
- growth of new work rebounds from September's recent low
- Input cost inflation eases to 13-month low
Much better than expected headline but muted reaction as the market seems to be focussing elsewhere.
We'll wait for any second wave but rally seems limited for the moment. The fickle finger of forex fate strikes again. On another day we would have seen a 50 pip rise at least.
That slowing of input cost inflation will be helping to cap as will the noted rate of job creation slipping to 7-mth lows.
GBPUSD currently 1.3060 EURGBP 0.8915, both barely moved.
More from Markit;
UK service providers indicated that business activity growth improved on its recent underwhelming trend in October. The latest expansion of service sector output was the fastest since April, supported by improved order books and resilient client demand.
Service providers also revealed a positive development in terms of operating expenses as the rate of input cost inflation eased to its lowest since September 2016. However, the rate of job creation slipped to a seven-month low.
Full report here
Also out UK Oct official reserves change USD 30m vs $554m prev
UK Services PMI mm