Latest data released by Markit/CIPS - 6 January 2021
- Composite PMI 50.4 vs 50.7 prelim
The preliminary report can be found here. A slight downwards revision as services activity is seen declining for a second month in a row, albeit marginally.
That said, the data here doesn't hold much significance as Q1 economic prospects have been dampened by the latest seven-week lockdown across the UK.
Markit notes that:
"December data confirm that the UK service sector has swung back into decline after the partial rebound seen during the third quarter of 2020, largely reflecting tighter restrictions on consumer services amid the worsening trajectory of the pandemic.
"Shrinking demand resulted in additional price discounting to stimulate sales at the end of the year. Margins were also hit by a sharp and accelerated rise in operating expenses, which were linked to transport shortages and the pass through of higher freight costs by suppliers.
"With a third national lockdown underway, service providers will be braced for a sustained period of subdued UK economic conditions and deferred client spending in the first quarter of this year. However, business optimism on a 12-month horizon was relatively upbeat in December and reached its highest level for almost six years, underpinned by hopes that a successful vaccine roll-out will help to deliver a strong economic rebound in the second half of 2021."