Activity in the UK service sector picked up slightly last month, but remained subdued according to a closely watched business survey released on Thursday.
Research firm Markit said its services purchasing managers’ index rose to 52.8 in April, compared to forecasts for a reading of 53.5.
Firms noted that subdued consumer spending had held back business activity growth in April.
Meanwhile, concerns about the domestic economic outlook had acted as a brake corporate spending, the report said.
The report did little to alter the view of investors that the Bank of England will leave interest rates unchanged at its upcoming meeting next week.
“The services survey adds to signs that the rate of economic growth remained disappointingly subdued at the start of the second quarter”, said Chris Williamson, chief business economist at survey compiler Markit.
“The disappointing services data will add to expectations that the MPC will take its finger firmly off the rate hike trigger. Any further slowing will also raise questions as to whether the November rate hike may have been ill-timed.”
Recommendation:
Entry Sell: 1.9275
Take Profit: 1.9030
Stop Loss: 1.9458
Research firm Markit said its services purchasing managers’ index rose to 52.8 in April, compared to forecasts for a reading of 53.5.
Firms noted that subdued consumer spending had held back business activity growth in April.
Meanwhile, concerns about the domestic economic outlook had acted as a brake corporate spending, the report said.
The report did little to alter the view of investors that the Bank of England will leave interest rates unchanged at its upcoming meeting next week.
“The services survey adds to signs that the rate of economic growth remained disappointingly subdued at the start of the second quarter”, said Chris Williamson, chief business economist at survey compiler Markit.
“The disappointing services data will add to expectations that the MPC will take its finger firmly off the rate hike trigger. Any further slowing will also raise questions as to whether the November rate hike may have been ill-timed.”
Recommendation:
Entry Sell: 1.9275
Take Profit: 1.9030
Stop Loss: 1.9458