UK Services PMI in November
According to a report by Markit Economics, the final United Kingdom Services PMI (Purchasing Managers’ Index) fell in November 2017. It came in at 53.8 compared to 55.6 in October. It didn’t beat the market expectation of 55.0.
The weaker improvement in the services PMI in November was mainly due to the weaker improvement in production volume and output. Export orders in the United Kingdom also improved, but at a slower rate. New orders also rose but at a weaker rate. Job growth was unchanged in November.
Economic condition of the United Kingdom
Improvement in inflation and a lower unemployment rate in the United Kingdom has helped its central bank policymakers became hawkish. In November 2017, the Bank of England raised its key interest rate 25 basis points for the first time in nearly a decade. When an economy is improving, an interest rate hike can be appropriate.
Index and ETF performance
The iShares MSCI United Kingdom ETF (EWU) remained unchanged in November 2017. The country’s FTSE 100 Index (UKX-INDEX) fell 2.2% that month.
In the next part of this series, we’ll analyze the performance of the Japan Services PMI for November 2017.