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U.K. Services PMI Unexpectedly Ticks Higher But Remains Far From Recovery
Tuesday, 06 January 2009 08:37:33 GMT  |  DailyFX Research
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U.K. December services PMI unexpectedly improved to 40.2 compared to a market median estimate for a drop to 39.2, but still remained near November's record low of 40.1. Data hence nevertheless highlight the very depressed state of Britain's important services sector and with the outlook for the situation to deteriorate next year, data underpin the likelihood of further BoE rate cuts. A breakdown of the headline reading shows that the sub-indicies for employment hit a new record low of 40.5, versus 43.1 in November. Prices charged also hit a new series low as businesses try to accommodate falling demand, while the future activity expectations index remained exceptionally low. Today's services data mirror last week's manufacturing PMI release, which also surprisingly improved slightly, but saw a drop to the employment index.

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