UK services PMI: ‘A slowing in services sector growth completes a triple-whammy of disappointing PMIs’

Dhwani Mehta FXStreet

The services sector activity in the UK economy extended deterioration for the second straight month, posting a slightly bigger-than expected drop in the month of June, a fresh report from Markit Economics showed on Wednesday.

The services PMI slumped to 53.4 in June versus a 53.8 reading booked in May. Markets predicted a drop to 53.5 last month.

Key Points:

New business growth eases to nine-month low

Job creation picks up to 14-month high

Business optimism drops to second-lowest since December 2011

Chris Williamson, Chief Economist at Markit, noted: “A slowing in services sector growth completes a triple-whammy of disappointing PMI survey readings. Although the three PMI surveys are running at levels that are historically consistent with GDP growing by around 0.4% in the second quarter, it’s clear that the economy heads into the third quarter losing momentum.”

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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