UK’s Services PMI Weakened in August 2017
UK’s Services PMI in August
According to a report by Markit Economics, the UK Services PMI (purchasing managers’ index) stood at 53.2 in August 2017 compared to 53.8 in July. It didn’t beat the market expectation of 53.6. The August service PMI figure was the lowest figure since September 2016.
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The lower UK (EWU) services PMI in August was mainly due to the slower improvement in new business orders and export orders for the month. Production output, job growth, and production volumes fell during the month.
The declining business activity in 2H17 is increasing investors’ concerns about the economic outlook. The UK might experience some trade and business uncertainty in the near future as it exits the European Union (VGK) (EZU). However, the major economic indicators of the Eurozone have been improving gradually and increasing investors’ confidence.
Performance of index and ETF
The iShares MSCI United Kingdom ETF (EWU), which tracks the performance of the United Kingdom, fell nearly 0.8% in August 2017. The UK’s FTSE 100 Index rose nearly 0.8% in August 2017.
In the next part of this series, we’ll analyze Japan’s services PMI in August.