Markit European services PMI
Markit published the July services PMI (purchasing managers’ index) number for European countries (EZU) on August 3, 2016. The services activity expanded in Europe despite the weak manufacturing PMI release earlier in the week. Read Why Did Manufacturing Activity Slow in the Eurozone? for more details on the manufacturing PMI release.
Markit UK Services PMI indicates a contraction
The Markit UK (EWU) services PMI registered a contraction in service-related business activity. According to the Markit report, the new business and service output fell at the fastest pace in over seven years. The business outlook also fell to the lowest level since February 2009. The fall was primarily attributed to the Brexit vote. It created uncertainties in the business community.
The Markit Business Activity Index had a sharp fall from 52.3 in June to 47.4 in July. This marked the first contraction in the economy since December 2012.
Markit US Services PMI rise above forecasts
The Markit US Services PMI was among the few that managed to beat the market forecasts. The PMI came out at 51.4—compared to forecasts of 51.0. The business confidence index was the brightest spot in the report. It rebounded in July after a sharp fall in June when there were uncertainties about the Brexit decision. The S&P 500 (SPY) and NASDAQ posted gains of 0.31% and 0.43%, respectively, on August 3, 2016.