January 2017 UK Markit/CIPS services PMI report 54.5 vs 55.8 exp

Details from the January 2017 UK Markit/CIPS services PMI report 3 February 2017

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  Prior 56.2
  
  


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  New business 55.9 vs 58.1 prior
  
  


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  Composite 55.5 vs 56.0 exp. Prior 56.7
  
  


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  New orders 56.3 vs 58.2 prior
  
  

Pretty similar story to the European PMI"s and other reports for Jan in that we"re seeing a pull back from the strong finish to 2016.  

Firms expectations are holding up though and are at their highest since last March. Input costs at the highest since Mar 2011. Markit say that the Jan numbers still show positive signs and could put the UK on course for 0.5% growth in Q1. However, they note that higher costs could start to bite into employment.

"The main area of concern is the extent to which companies" costs are rising across the economy, with the rate of inflation accelerating to a pace not seen since before the global financial crisis.

There is evidence that higher costs are deterring some companies from taking on extra staff, with the January surveys finding employment to have increased at the slowest rate since August. Only construction companies stepped up their hiring at the start of 2017."

The quid has taken a bath on what is the UK"s biggest sector for GDP. Cable is through 1.2500 to 1.2487 and EURGBP is just moving into 0.8600 from around 0.8580.

January 2017 UK Markit/CIPS services PMI report 54.5 vs 55.8 exp
January 2017 UK Markit/CIPS services PMI report 54.5 vs 55.8 exp
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