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UK DATA: PMI lower than expected; but firms pass on cost increases

UK DATA

UK PMI came in a little lower than expected across both manufacturing and services - but remained above 50 for both. And on the price side firms reported that they were passing on cost increases - so that will be a concern from the MPC (particularly if growth concerns pick up).

  • Given that there is budget uncertainty clouding this number - with new orders down on uncertainty - we don't think that this number is as negative as it first appears, and are not convinced it will really increase the probability of sequential cuts.

Highlights from the press release:

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UK PMI came in a little lower than expected across both manufacturing and services - but remained above 50 for both. And on the price side firms reported that they were passing on cost increases - so that will be a concern from the MPC (particularly if growth concerns pick up).

  • Given that there is budget uncertainty clouding this number - with new orders down on uncertainty - we don't think that this number is as negative as it first appears, and are not convinced it will really increase the probability of sequential cuts.

Highlights from the press release:

Keep reading...Show less