Latest data released by ONS - 16 December 2019
- Prior 48.9
- Services PMI 49.0 vs 49.5 expected
- Prior 49.3
- Composite PMI 48.5 vs 49.5 expected
- Prior 49.3
Poor readings across the board and that increases the likelihood of an economic contraction in the UK seen in Q4. That said, be reminded that the subdued business sentiment here is taken prior to the election so there is that to consider.
Markit notes that:
"December's PMI survey data sadly lacked festive cheer, indicating that the economy contracted for the third time in the past four months. The latest decline was the secondlargest recorded over the past decade, and increases the likelihood that the economy contracted slightly in the fourth quarter as Brexit-related uncertainty intensified in the lead up to the general election."
The pound has pared majority of its gains on the poorer data with cable slipping to 1.3338 but I still see this as a potential dip-buying opportunity - particularly if it eases back towards the 100-hour MA @ 1.3257.