UK: Services PMI should outperform the softer January data – TDS

Analysts at TDS explain that while most of the early data was suggesting we could see the services sector run flat, the weak prints on both the manufacturing and construction PMIs last week now points to the UK Services PMI declining from 54.2 to 53.2, versus a consensus of 54.0, though TDS suspect that may likely drift lower by the time of release.

Key Quotes

“The January PMIs so far suggest the adjustment in the housing sector persisted into January while more of the demand was coming from external sources rather than domestic, all suggesting no reason the Services PMI should outperform the softer January data.”