UK: Improvement in Services PMI – TDS

Analysts at TD Securities note that the UK services PMI improved to 50.0 in October, beating consensus of 49.7.

Key Quotes

“The report though still had fairly soft details, and just about every paragraph mentioned Brexit uncertainty. New business orders are still contracting, and jobs are still being shed, with a combination of non-replacement of voluntary leavers and compulsory redundancies (previously just non-replacement of voluntary leavers).”

“The 12-month outlook improved a bit, based entirely on the expectation that Brexit uncertainty would be resolved in early-2020. Overall, the PMIs are consistent with flat to slightly negative GDP for Q4.”