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4 Feb 2015
UK service sector PMI adds to optimism on 1Q15 GDP – ING
FXStreet (Barcelona) - James Knightley, Senior Economist at ING, notes that more than expected gain in the UK service sector PMI adds suggests that 1Q 2015 GDP growth is likely to accelerate.
Key Quotes
“The UK service sector PMI has rounded out a decent week for business surveys, rising to 57.2 in January from 55.8 in December. The market had been looking for a more muted bounce to 56.3 – a level above 50 indicates economic expansion.”
“With the manufacturing and construction indices both having already risen it leaves the composite series at 56.7 versus 55.3 in December. This suggests that 2015 is starting out on a decent footing with 1Q15 GDP growth likely to accelerate from the rather disappointing 0.5%QoQ figure recorded in 4Q14.”
“Moreover, with consumer fundamentals being boosted by rising real wages, strong employment and favourable tax changes we are optimistic on the prospects for growth in 2015 more broadly. Political uncertainty remains the main risk to this outlook.”
Key Quotes
“The UK service sector PMI has rounded out a decent week for business surveys, rising to 57.2 in January from 55.8 in December. The market had been looking for a more muted bounce to 56.3 – a level above 50 indicates economic expansion.”
“With the manufacturing and construction indices both having already risen it leaves the composite series at 56.7 versus 55.3 in December. This suggests that 2015 is starting out on a decent footing with 1Q15 GDP growth likely to accelerate from the rather disappointing 0.5%QoQ figure recorded in 4Q14.”
“Moreover, with consumer fundamentals being boosted by rising real wages, strong employment and favourable tax changes we are optimistic on the prospects for growth in 2015 more broadly. Political uncertainty remains the main risk to this outlook.”