In the UK, the services PMI slumped to a 15-month low, weighed by economic and geopolitical uncertainty, raising the threat of a recession.
It was a relatively busy start to the day for the UK market. Private sector PMI figures for May drew market interest this morning.
Last week, better than expected retail sales and employment figures delivered strong Pound support. Today’s numbers, however, left the Pound in the deep red, with weak service sector activity reigniting fears of a UK recession.
In May, the manufacturing PMI fell from 55.8 to 54.6, with the services PMI sinking from 58.9 to a 15-month low of 51.8. Economists forecast PMIs of 54.9 and 56.9, respectively.
As a result of the sharp fall in the services PMI, the composite PMI slid from 58.2 to a 15-month low of 51.8. Economists forecast a fall to 56.5.
According to the prelim May survey,
Ahead of today’s PMI figures, the Pound rose to a pre-stat and a current-day high of $1.25986.
In response to the numbers, the Pound tumbled to a post-stat and a current-day low of $1.24810.
At the time of writing, the Pound was down 0.84% to $1.24817.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.