uploads///UK Services PMI in May

United Kingdom’s Services PMI Was Weaker in May


Nov. 20 2020, Updated 11:33 a.m. ET

United Kingdom’s services PMI in May

According to a report by Markit Economics, the final United Kingdom services PMI (purchasing managers’ index) was 53.8 in May 2017—compared to 55.8 in April. The PMI figure was also below the market’s expectations of 55.

Weaker improvement in the United Kingdom’s services PMI was mainly due to slower improvement in new business orders, domestic demand, and export orders in May 2017. Before uncertainty about the United Kingdom’s election (EWU), consumer demand was lower in May. Consumer household budgets were also lower in May 2017.

Article continues below advertisement

Lower contribution of services 

In our previous series, we saw that the United Kingdom’s (EWU) economic growth was 0.3% in 1Q17. However, the figure didn’t beat the market’s expectation of 0.4% growth. The service sector contributed less to the GDP in 1Q17. In previous quarters, the service sector contributed to most of the GDP.

The current environment in the United Kingdom indicates a hung political environment. To improve its business environment, the country needs a stable political environment. Many leading financial services companies such as Barclays (BCS), HSBC (HSBC), and the Royal Bank of Scotland (RBS) are operating in the United Kingdom. A stable political environment will bring more investment to the United Kingdom. However, the economy is still concerned about Britain’s exit from the Eurozone (EZU) (IEV) (HEDJ) (VGK), which could impact the economy’s performance.

In the next part of this series, we’ll analyze Japan’s services PMI in May 2017.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.