Back
5 May 2016
UK PMI: Continued near-term headwinds - Lloyds
According to analysts from Lloyds, today’s PMI numbers in the United Kingdom contribute to the impression that the slowdown in growth in becoming increasingly clear.
Key Quotes:
“The UK services PMI fell back in April after its recovery in March, dipping to 52.3 from 53.7, much weaker than expected (CON: 53.5). April’s headline PMI is a 38-month low, well below the long-term average of 55.2.”
“Following the marked weakness seen in both the manufacturing and construction PMIs earlier this week, downside risks to the key services sector PMI seemed like a heightened possibility, with the earlier reports pointing to increased economic uncertainty – global and domestic – as weighing on sentiment.”
“Overall, the impression that growth in the dominant and domestically facing sector of the economy has softened meaningfully since the end of 2015 is becoming increasingly clear, with the report details suggesting continued near-term headwinds to the remaining modest momentum.”
“With the services PMI historically having some predictive power for trailing changes in the MPC’s policy sentiment, today’s weaker reading is likely to reinforce MPC caution.”
Key Quotes:
“The UK services PMI fell back in April after its recovery in March, dipping to 52.3 from 53.7, much weaker than expected (CON: 53.5). April’s headline PMI is a 38-month low, well below the long-term average of 55.2.”
“Following the marked weakness seen in both the manufacturing and construction PMIs earlier this week, downside risks to the key services sector PMI seemed like a heightened possibility, with the earlier reports pointing to increased economic uncertainty – global and domestic – as weighing on sentiment.”
“Overall, the impression that growth in the dominant and domestically facing sector of the economy has softened meaningfully since the end of 2015 is becoming increasingly clear, with the report details suggesting continued near-term headwinds to the remaining modest momentum.”
“With the services PMI historically having some predictive power for trailing changes in the MPC’s policy sentiment, today’s weaker reading is likely to reinforce MPC caution.”