FOREX TradingCharts.com

Financial News: UK Service Sector Logs Stronger Upturn In August

UK Service Sector Logs Stronger Upturn In August

09/05/2018 - 08:36:00 (RTTNews)

(RTTNews) - UK services sector expanded at a faster pace in August, largely driven by stronger new orders, despite the Brexit uncertainty, survey data from IHS Markit showed Wednesday.

The IHS Markit/Chartered Institute of Procurement & Supply services Purchasing Managers' Index rose more-than-expected to 54.3 from 53.5 in July, reaching its second-highest level since February.

The expected score was 53.9. The index has remained above the neutral 50.0 no-change mark in each month since August 2016.

Ruth Gregory, an economist at Capital Economics, said the survey provides reassurance that the rebound in GDP growth in the second quarter has been sustained in the third quarter so far. Despite this, the chances of an interest rate hike at next week's Bank of England meeting are extremely slim.

"Given our assumption that a Brexit deal will only be secured at the eleventh hour, we don't expect the MPC to raise rates again until May 2019, after the UK has left the EU," the economist added.

"In summary, though the sector remained in positive territory, the dark clouds of political indecision are still having an effect and preventing more business activity," Duncan Brock, group director at the CIPS, said.

"Service providers are likely to continue along this vein for the rest of the year until those clouds have cleared," Brock added.

New work growth picked up slightly since July, but was still softer than the trend since the current phase of expansion started in August 2016.

The rate of job creation was the fastest since February, reflecting efforts to boost business capacity and meet increased workloads. Difficulties recruiting suitable skilled staff contributed to higher salary payments.

Despite a sharp and accelerated rise in average cost burdens, intense competitive pressures meant that prices charged inflation was only moderate and remained well below the peak seen in November 2017.

However, optimism towards the year-ahead business outlook hit five-month low in August. Brexit uncertainty had a near-term impact on clients' business investment plans.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2018 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Australia Westpac Leading Index Signals Slowing Growth Momentum (11 min(s), 01 sec(s) ago)
(RTTNews) - Australia's leading index signaled a slowing growth momentum into the second half ...Full Story»

European Economics Preview: UK Inflation Data Due (39 min(s), 01 sec(s) ago)
(RTTNews) - Consumer and producer prices from the UK and current account from euro area are due on ...Full Story»

Malaysia's Inflation Eases More Than Forecast (01 hr(s), 03 min(s), 01 sec(s) ago)
(RTTNews) - Malaysia's inflation eased more-than-expected in August on fuel cost, figures from ...Full Story»

BoJ Maintains Monetary Stimulus (01 hr(s), 26 min(s), 01 sec(s) ago)
(RTTNews) - The Bank of Japan kept its ultra-loose monetary policy unchanged, as widely expected, ...Full Story»

Japan Has Y444.594 Billion Trade Shortfall (26 min(s), 59 sec(s) ago)
(RTTNews) - Japan posted a 444.594 billion yen trade deficit in August, the Ministry of Finance sa ...Full Story»

New Zealand Q2 Current Account Deficit NZ$2.7 Billion (26 min(s), 59 sec(s) ago)
(RTTNews) - New Zealand's seasonally adjusted current account deficit fell to NZ$2.7 billion f ...Full Story»

Japan Interest Rate Decision Due On Wednesday (11 min(s), 59 sec(s) ago)
(RTTNews) - The Bank of Japan will wrap up its monetary policy meeting on Wednesday and then annou ...Full Story»

U.S. Homebuilder Confidence Holds Steady In September (32 min(s), 59 sec(s) ago)
(RTTNews) - Homebuilder confidence in the U.S. remained firm in the month of September, according ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Australia Westpac Leading Index Signals Slowing Growth Momentum

09/19/2018 - 01:37 AM (RTTNews)
(RTTNews) - Australia's leading index signaled a slowing growth momentum into the second half ...Full Story>>

European Economics Preview: UK Inflation Data Due

09/19/2018 - 01:09 AM (RTTNews)
(RTTNews) - Consumer and producer prices from the UK and current account from euro area are due on ...Full Story>>

Malaysia's Inflation Eases More Than Forecast

09/19/2018 - 00:45 AM (RTTNews)
(RTTNews) - Malaysia's inflation eased more-than-expected in August on fuel cost, figures from ...Full Story>>

BoJ Maintains Monetary Stimulus

09/19/2018 - 00:22 AM (RTTNews)
(RTTNews) - The Bank of Japan kept its ultra-loose monetary policy unchanged, as widely expected, ...Full Story>>

Japan Has Y444.594 Billion Trade Shortfall

09/18/2018 - 20:15 PM (RTTNews)
(RTTNews) - Japan posted a 444.594 billion yen trade deficit in August, the Ministry of Finance sa ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.