- UK Manufacturing PMI beats estimates with 64.2 in June.
- Services PMI in the UK eases to 61.7 in June, a miss.
- GBP/USD is off the multi-day highs below 1.3987 amid mixed UK PMIs.
The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) eased to 64.2 in June versus 64.0 expected and 65.6 – May’s final reading.
Meanwhile, the Flash UK Services Business Activity Index for June fell to 61.7 versus May’s final readout of 62.9 and 62.8 expected. The index hit the lowest in two months.
Chris Williamson, Chief Business Economist at IHS Markit, commented on the survey
"Businesses are reporting an ongoing surge in demand in June as the economy reopens, led by the hospitality sector, meaning the second quarter looks to have seen economic growth rebound very sharply from the first quarter’s decline.”
"There are some signs that the rate of expansion appears to have peaked, as both output and new order growth cooled slightly from May’s record performances, but full order books and a further loosening of virus-fighting restrictions should nevertheless help ensure growth remains strong as we head through the summer.
FX implications
The mixed UK Preliminary Manufacturing and Services PMIs had a little impact on the pound, as GBP/USD held its range around 1.3970 – off the multi-day highs of 1.3987 reached before the data release. The cable is up 0.18% on the day,
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