The UK’s services PMI in September
According to a report by Markit Economics, the final UK services PMI (purchasing managers’ index) stood at 53.6 in September 2017 compared to 53.2 in August 2017. The PMI figure beat the market expectations of 53.2.
The improvement in the services PMI in September is mostly due to the stronger improvement in production volume and export orders in the same month. New work orders rose at a slower pace in that month. Production output also rose in September, and job growth rose to a 19-month high in September 2017.
The UK’s election outcome
After the UK’s (EWU) general election outcome in June 2017, its political environment has displayed a significant change. The unstable environment in its politics is also subduing consumer confidence in the economy.
At the same time, the Brexit negotiations are an ongoing process. Britain’s exit from the European Union (VGK) (IEV) could hamper its economic growth in the near future. However, the gradual improvement in its services and manufacturing PMIs could improve investors’ confidence in the economy.
Performance of the related index and ETF
The iShares MSCI United Kingdom ETF (EWU) rose nearly 2.9% in September 2017. The UK’s FTSE 100 index fell marginally in September 2017.
In the next part of this series, we will analyze the performance of the Japan’s services PMI in September 2017.