UK: Downside risks to the PMI Services release - TDS

Research Team at TDS, suggests that we’ve seen somewhat less evidence of the EU Referendum weighing on services components of the UK economy so far, but this week’s other PMI releases suggest that uncertainty is finally biting into activity.

Key Quotes

“We therefore flag downside risks to the PMI Services release. Consensus is looking for a roughly-stable 53.5 reading but given the surprises seen so far this week (with both construction and manufacturing PMIs at 3-year lows), we look for the index break through 53.0, with a print below 52.6 putting it at a three-year low as well.”