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UK PMI data beat expectations last week, with all components lifting and services, in particular, rebounded solidly to 55.1, above an expected unchanged outcome of 54, notes Greg Gibbs, Analyst at Amplifying Global FX Capital.

Key Quotes

“The UK government Office for National Statistics will release the first in a new series – monthly GDP – on Tuesday this week.   The first release will be for the three-months ending May, over the three-months ending February.   In future, the ONS will release 3mth/3mth growth on a rolling basis every month.”

“The data is expected to show growth accelerated after bad weather hit activity early in the year. The FT reports that JP Morgan economists are predicting growth rebounded from close to zero %3mth/3mth in April to +0.3% 3mth/3mth in May.”

“In light of the PMI reports, we expect to see other data this week show strength in the UK, including manufacturing production, construction output, and the index of services, all for May.”