- UK Final Services PMI downwardly revised to 55.0 in August.
- GBP/USD remains uninspired near 1.3730 on the UK data.
- Eyes on US NFP and ISM Services PMI amid a subdued USD.
The UK services sector activity expanded less than expected in August, the final report from IHS Markit confirmed this Friday.
The seasonally adjusted IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) was revised lower to 55.0 in August versus 55.5 expected and a 55.5 – last month’s flash reading.
Key points
Recovery in business activity eases further from May's peak.
Fastest rise in employment numbers since survey began in July 1996.
Business optimism climbs to three-month high.
Tim Moore, Economics Director at IHS Markit, which compiles the survey
“The service sector lost momentum for the third consecutive month as the impact of looser pandemic restrictions faded in August. Many businesses suffered constraints on growth due to staff shortages, self-isolation rules and stretched supply chain capacity.”
"Service providers signalled the sharpest rise in employment since data collection began 25 years ago. Additional staff recruitment typically reflected efforts to return workforce numbers to pre-pandemic levels after widespread job cuts last year. Many survey respondents commented on long wait times to fill vacancies and an unexpectedly high staff turnover as the UK economy reopened.”
FX implications
GBP/USD was little changed on the downbeat UK data, keeping its range around 1.3730. The spot is bouncing off lows at 1.3724, almost unchanged on the day.
