UK Preliminary Services PMI inches lower to 49.2 in October vs. 49.5 expected

UK Manufacturing PMI rose to 45.2 in October, above expectations of 45.0.
Services PMI in the UK fell to 49.2 in October, a downside surprise.
GBP/USD is recapturing bids above 1.2250 on mixed UK business PMIs.

Dhwani Mehta FXStreet

The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) rose to 45.2 in October versus the 45.0 expected and, 44.3 - September’s final readout.

Meanwhile, the Preliminary UK Services Business Activity Index reached a nine-month low of 49.2 in October, compared with a 49.3 final print for September and the 49.5 expected figure.

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said: “The UK economy continued to skirt with recession in October, as the increased cost of living, higher interest rates and falling exports were widely blamed on a third month of falling output.”

“The overall pace of decline remains only modest, signalling a mere 0.1% quarterly rate of GDP decline, but gloom about the outlook has intensified in the uncertain economic climate, boding ill for output in the coming months. A recession, albeit only mild at present, cannot be ruled out,” Williamson added.

FX implications

At the press time, GBP/USD is back on the bids near 1.2260 despite the mixed UK data, adding 0.09% so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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