UK Preliminary Services PMI steadies at 48.8 in November vs. 48.0 expected

• UK Manufacturing PMI stays unchanged at 46.2 in November, surpassing estimates.
• Services PMI in the UK comes in at 48.8 in November, beating estimates.
• GBP/USD keeps its range near 1.1900 on upbeat UK PMIs.

The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) holds steady at 46.2 in November versus 45.8 expected and 46.2 – October’s final revision.

Meanwhile, the Preliminary UK Services Business Activity Index for November arrived at 48.8 when compared to October’s final print of 48.8 and 48.0 expected.

Chris Williamson, Chief Business Economist at S&P Global, commented on the survey

“A further steep fall in business activity in November adds to growing signs that the UK is in recession, with GDP likely to fall for a second consecutive quarter in the closing months of 2022. If pandemic lockdown months are excluded, the PMI for the fourth quarter so far is signalling the steepest economic contraction since the height of the global financial crisis in the first quarter of 2009, consistent with the economy contracting at a quarterly rate of 0.4%.”

“Forward-looking indicators, notably an increasingly steep drop in demand for goods and services, suggest the downturn will deepen as we head into the new year.”

FX implications

Upbeat UK Services PMI fails to impress the GBP/USD pair. The spot is trading at 1.1894, adding 0.11% on the day.