UK: Upside surprise in Services PMI – TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities note that the UK’s Services PMI surprised to the upside for the month of December, rising nearly a point to 51.2.

Key Quotes

“Firms noted that Brexit concerns weighed on business-to-business sales in the month, and that consumer demand remained subdued. Markit estimates that the Q4 PMIs suggest growth of just 0.1% q/q in the quarter, confirming near-stagnation in the UK economy, though we note that our own models point to growth perhaps a tick higher.”

“Consumer borrowing figures were also released for November, and point to the slowest consumer credit growth since March 2015 (though still at a relatively healthy 7.1% y/y pace), while mortgage approvals fell a sharp 4.5% m/m.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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