The third UK PMI brings a third disappointment: the services sector is expanding at a slower pace, with the PMI standing at 55.8 points. This is the lowest read since May 2013, just before Mark Carney became governor of the BOE. A drop of over 3 points is certainly worrying.
GBP/USD slips below 1.52 and sets a new multi month low. So far, cable found a bottom at 1.5188.
In addition, the credit conditions report notes the biggest mortgage lending fall since the third quarter of 2008, in the fourth quarter of 2014.
The purchasing managers’ index from Markit regarding the services sector was expected to tick up to 58.9 points in December after 58.6 in November. The services sector is by far the largest in the country.
GBP/USD traded around 1.5220 towards the publication.
Earlier, both the construction PMI and the manufacturing PMI disappointed. They are still pointing to growth, with still significant expansion in the construction sector but instead of a re-balancing of the economy, we have a general slowdown.
Here is the preview: GBP/USD Trading the British Services PMI
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