UK: Preliminary services PMI drops to 53.4 in March vs. 53.8 expected

  • The British Manufacturing PMI rose to 49.9 in March, beating estimates of 47.8.
  • The UK services PMI unexpectedly fell to 53.4 in March.
  • GBP/USD remains lower near 1.2770 following mixed UK business PMIs.

He Manufacturing Purchasing Managers' Index (PMI) seasonally adjusted S&P Global/UK CIPS improved noticeably from 47.5 in February to 49.9 in Marchabove the estimated reading of 47.8.

For its part, the preliminary business activity index PMI in the UK services sector fell to 53.4 in March, below the market forecast of 53.8. The previous figure was 53.8.

Commenting on the preliminary PMI data, Chris Williamson, Chief Economist at S&P Global Market Intelligence, stated: “The interim PMI data for March provides further indications that The British economy has emerged from last year's brief recession. “Strong new expansion in business activity capped the economy’s best quarter since the second quarter of last year.”

“The survey data is indicative that first quarter GDP will rise by 0.25%, signaling a reassuringly strong rebound from the technical recession seen in the second half of 2023,” Chris added.

Implications for the foreign exchange market

GBP/USD is consolidating the latest decline to near 1.2750 following mixed UK PMI data. The pair is currently trading at 1.2776, down 0.05% on the day.

Source: Fx Street

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