MNI DATA SURVEY: UK Nov IHS Markit Services PMI

Repeats Story Initially Transmitted at 12:05 GMT Dec 4/07:05 EST Dec 4

By Jamie Satchithanantham

     LONDON (MNI) - The UK IHS Markit Services PMI raised a few eyebrows last

month, posting a two point increase to 55.6 -- a six-month high -- much to the

surprise of market spectators.

     The November print, due on Dec 5, will show if the strong prevailing

conditions extended into November, or whether a return to its recent, largely

underwhelming trend is instead on the cards.

     Highlights of October's survey included a rebound in new orders from its

13m low in September to expand at the fastest pace since May and operating costs

easing to its lowest level since September 2016. But it was not all rosy. Job

growth did slip to a seven-month low and prospects for growth looking forward

did remain fragile.

     A survey of analysts conducted by MNI yielded a a median outturn slightly

below the October result, 0.6 points lower at 55.0.

     While the survey excludes firms in the retail sales sector, other

consumer-facing businesses will have had an increasingly difficult time luring

consumers, lacking in confidence and disposable income, to open their wallets.

     This week, we learned of UK consumer confidence slipping back to the lowest

level since the Brexit vote last summer and that was on top of households

continuing to process the first hike in interest rates in 10 years.

----------------------------

                         Nov

                    Services

                         PMI

                       Index

Date Out              05-Dec

Median                  55.0

Forecast High           56.4

Forecast Low            55.0

Count                     11

Prior                   55.6

Capital Economics       55.0

Credit Suisse           55.0

Commerzbank             55.2

Investec                54.6

JP Morgan               55.4

Lloyds TSB              54.8

Natixis                 56.4

Nomura                  55.0

Oxford Economics        55.2

Pantheon                54.5

Standard Chartered      55.5

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com