Latest data released by Markit/CIPS - 22 November 2019
- Prior 49.6
- Services PMI 48.6 vs 50.1 expected
- Prior 50.0
- Composite PMI 48.5 vs 50.2 expected
- Prior 50.0
Those are some awful readings, especially the services and composite prints. Both prints are the weakest since July 2016 and could very well point towards the UK economy contracting in Q4 this year. Markit notes that:
"With an upcoming general election adding to Brexit-related uncertainty about the outlook, it's no surprise to see UK businesses reporting falling output and orders in November. The decline signalled by the flash PMI follows stagnation in October and adds to what has been the survey's worst spell since the recession of 2008-9. The weak survey data puts the economy on course for a 0.2% drop in GDP in the fourth quarter, and also pushes the PMI further into territory that would normally be associated with the Bank of England adding more stimulus to the economy."
Cable has been dragged lower to a session low of 1.2875 now as sellers will threaten a firm break below the 200-hour MA @ 1.2899 now.
