FXStreet (Barcelona) – The TD Securities Team explain that although the UK services PMI fell to 56.5 in May, the details suggest it was just a moderation to more sustainable levels than any weak spots.
Key Quotes
“The services PMI followed the manf index lower in falling from 59.5 to 56.5 in May (mkt 59.2), but the details were much stronger than the headline would suggest.”
“The report mentions the election result reducing business uncertainty and increasing confidence, while the pullback in the headline was due to lower new orders, although new orders were high enough to still cause a further increase in the level of work outstanding.”
“Employment is still growing “at a marked pace” and firms mention an ongoing general upturn, new products, and a stronger housing market as factors that will support growth.”
“So the guts of the report really weren’t too bad, with just a moderation to more sustainable levels in some areas rather than any particularly weak spots.”
(Market News Provided by FXstreet)