United Kingdom flash S&P Global Services PMI unexpectedly arrives lower at 48.7 in June vs. 50.0 estimates
Preliminary United Kingdom flash S&P Global Services Purchasing Managers’ Index (PMI) declines at a faster pace to 48.7 in June from 49.3 in May. The Services PMI was expected to arrive higher at 50.0, a figure that separates expansion from contraction.
The overall private business activity contracts at a faster pace due to further contraction in the service sector activity and a slowdown in the manufacturing sector.
The Composite PMI contracts further to 49.4 from 49.7 in May. The Manufacturing PMI drops to 53.1 vs. 53.6 estimates and the prior release of 53.9.
“A disappointing June ‘flash’ PMI indicates that the economy contracted for a second successive month, albeit at only a 0.1% rate and merely flat-lining over the second quarter as a whole. “Price pressures remain elevated as companies point to the energy shock and supply squeeze from the war in the Middle East as exacerbating existing cost pressures from government policies," Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said.
Market reaction
The selling pressure on the British Pound (GBP) extends against the US Dollar (USD) after the UK PMI data release. At press time, GBP/USD trades 0.26% lower at around 1.3215.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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