UK Service Activity Hits 11-Month Low

UK Purchasing Managers Index - Services (JUL)

Actual: 57.0
Expected: 57.5
Previous: 57.7

After unexpected improvements in manufacturing and construction activity, the service sector report crossed the wires below the market's concensus. Economists had projected a modest cooling for the July purchasing managers index from 57.7 to 57.5. However, a drop in nearly all of the indicator's components pushed the headline number down to 57.0, matching its lowest print since August. The breakdown provided a disappointing checklist. Employment and outstanding business marked a three months low, prices received hit cooled to its lowest levels in at least six months, while the important new business sub-gauge stepped own from June's high. The only notable improvement came from the expectations gauge which climbed for the second consecutive month to 74.5 despite the level of interest rates, the currency and the threat that recent floods may weigh on consumer sentiment and therefore spending.

In the minutes after the indicator was absorbed, GBPUSD was littled moved in its 10 point range above 2.0350 as traders wait for US event risk due later in the morning.