3 Jul 2015
UK June Services PMI might rise to 57.3 – Lloyds Bank
FXStreet (Barcelona) - Economists at Lloyds Bank, preview the UK June Services PMI data release, and forecast a rise to 57.3.
Key Quotes
“In the UK the June PMI’s have so far been mixed. The manufacturing index, which was released on Wednesday, fell back to a weaker-than-expected 51.4 which was its lowest reading since April 2013. On the other hand, the construction PMI, published yesterday, rose for the second month in a row to a stronger-than-expected 58.1.”
“While last month’s services PMI dipped sharply to a four-month low of 56.5 which raises some concerns about Q2 output, several factors suggest that underlying activity remains strong. Specifically, the business expectations balance, which has a better mapping to official output, rose to 71.5 from 71.1. Moreover, other survey evidence from the CBI and our own Business Barometer point to a rebound in today’s release. We look for a rise to 57.3.”
Key Quotes
“In the UK the June PMI’s have so far been mixed. The manufacturing index, which was released on Wednesday, fell back to a weaker-than-expected 51.4 which was its lowest reading since April 2013. On the other hand, the construction PMI, published yesterday, rose for the second month in a row to a stronger-than-expected 58.1.”
“While last month’s services PMI dipped sharply to a four-month low of 56.5 which raises some concerns about Q2 output, several factors suggest that underlying activity remains strong. Specifically, the business expectations balance, which has a better mapping to official output, rose to 71.5 from 71.1. Moreover, other survey evidence from the CBI and our own Business Barometer point to a rebound in today’s release. We look for a rise to 57.3.”