The UK Services PMI for September came in at 52.8, beating estimates, while the Manufacturing PMI declined to 51.5. The GBP/USD maintained losses near 1.3250 after the disappointing business PMIs data. The S&P Global/CIPS UK Manufacturing PMI dropped from 52.5 in August to 51.5 in September, below the forecast of 52.3. The UK Services Business Activity Index also dipped to 52.8 in September, lower than the market consensus of 53.5. Despite the slight cooling of output growth in manufacturing and services, the economy is still expected to grow at a rate near 0.3% in the third quarter, in line with the Bank of England’s forecast.
Following the release of the PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, stated that the slight decline in output growth should not be a cause for concern, as the data still indicate a steady economic growth rate. The GBP/USD pair remained on a downward trend near 1.3250 after the weak PMI figures were announced. The pair was trading at a 0.45% decrease for the day. The British Pound also showed weakness against the Japanese Yen compared to other major currencies.
In terms of currency performance, the British Pound experienced a decline against most major currencies on the day. The heat map displayed the percentage changes of the GBP against the USD, EUR, JPY, CAD, AUD, NZD, and CHF. The Pound was weakest against the Japanese Yen, showing a negative percentage change. The GBP fared better against the Euro but still showed a decrease in value. Overall, the Pound’s performance was mixed against the other major currencies, with varying degrees of change.
The UK Services PMI data for September came in slightly lower than expected at 52.8, while the Manufacturing PMI declined to 51.5. Despite the lower figures, the overall economic growth rate is still projected to be around 0.3% in the third quarter, according to the Bank of England’s forecast. The GBP/USD pair remained under pressure near 1.3250 following the release of the disappointing PMI data. Although there was a cooling of output growth in both manufacturing and services, it is not seen as a significant concern for the economy at this point.
In conclusion, the UK Services and Manufacturing PMI data for September showed a slight decline in output growth, with the Manufacturing PMI dropping to 51.5. The GBP/USD pair maintained losses near 1.3250 following the release of the downbeat PMI figures. While the data may indicate a cooling of growth in certain sectors, the overall economic outlook remains steady. The British Pound showed weakness against most major currencies for the day, particularly against the Japanese Yen. Despite the lower PMI figures, the economy is still expected to grow at a moderate pace in the third quarter.
