Monday brought UK Services PMI data. The rate of expansion of total activity accelerated further to the strongest since January. Employment growth picked up to the fastest since April, partly fuelled by the sharpest build-up of outstanding work since July 2015. The strength of long-term business sentiment weakened for the first time since July, however, attributed to ongoing political uncertainty and inflationary pressures. The Index remained above 50.0 for the fourth consecutive month in November, indicating a continued recovery in growth following a contraction in July linked to the EU referendum. Moreover, the Index rose to 55.2, from 54.5, signalling the fastest expansion since January. The rate of growth was broadly in line with the 20-year long-run survey average.
In the US session ISM Non-Manufacturing PMI figures were released. America’s service industries expanded in November at the fastest clip since October of last year, putting the economy’s biggest sector on a robust growth path. The Institute for Supply Management’s non-manufacturing index jumped to 57.2, exceeding all forecasts in a Bloomberg survey, from 54.8 in October, the Tempe, Arizona-based group’s data showed Monday. Readings above 50 signal growth. The median forecast called for 55.5.
There will be no major data releases both from UK and USA tomorrow, so we can expect a bit steadier session.
