United Kingdom GBP

United Kingdom S&P Global/CIPS UK Services PMI Final

Impact:
Medium
Source: S&P Global

Latest Release:

Date:
Surprise:
0.1
| GBP
Actual:
52.9
Forecast: 52.8
Previous/Revision:
53.5
Period: Mar
What Does It Measure?
The S&P Global/CIPS UK Services PMI Final measures the economic health of the services sector in the United Kingdom, focusing explicitly on factors such as business activity, employment, and new orders. It primarily assesses the expansion or contraction of services-related economic activities within this national context, with key indicators including the headline PMI figure, where a reading above 50 indicates growth, and below 50 indicates contraction.
Frequency
This report is released monthly and typically presents final figures, reflecting comprehensive data accumulation, with the release scheduled for the first working day of the following month.
Why Do Traders Care?
Traders monitor the Services PMI as it serves as a barometer for economic performance, influencing market expectations regarding growth and monetary policy. Positive results, particularly if exceeding forecasts, tend to support the value of the British pound and boost stock market performance, while weaker readings can have a contrary bearish effect.
What Is It Derived From?
The Services PMI is derived from a survey of approximately 400 services firms across the UK, capturing insights from various sectors including finance, transportation, and hospitality. The index utilizes a diffusion index methodology, aggregating the responses of participants to assess the level of activity, which is then weighted to reflect sector representation accurately.
Description
The final report represents a detailed and refined overview of the service sector's performance, contrasting with preliminary reports that may contain early estimates subject to adjustments. The final results provide a more accurate document of economic conditions, with important implications for market expectations and fiscal policies, emphasizing timely adjustments to initial data released to the public.
Additional Notes
The Services PMI is categorized as a leading economic indicator because it provides insights into future economic activity through the business outlook expressed by survey respondents. This report connects closely with other related indicators such as the Manufacturing PMI and overall GDP figures, reflecting broader economic trends both in the UK and globally.
Bullish or Bearish for Currency and Stocks
If the final PMI figure exceeds expectations, it is classified as higher than expected, which is bullish for the British pound and bullish for stocks. Conversely, if the reading falls short of forecasts, it is seen as lower than expected, leading to bearish implications for the currency and equities.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Apr 05, 2023
52.9
 52.8
53.5
 0.1
Mar 03, 2023
53.5
 53.3
48.7
 0.2
Feb 03, 2023
48.7
 48
49.9
 0.7
Jan 05, 2023
49.9
 50
48.8
 -0.1
Dec 05, 2022
48.8
 48.8
48.8
Nov 03, 2022
48.8
 47.5
50
 1.3
Oct 05, 2022
50
 49.2
50.9
 0.8
Sep 05, 2022
50.9
 52.5
52.6
-1.6
Aug 03, 2022
52.6
 53.3
54.3
 -0.7
Jul 05, 2022
54.3
 53.4
53.4
 0.9
Jun 07, 2022
53.4
 51.8
58.9
1.6
May 05, 2022
58.9
 58.3
62.6
 0.6
Apr 05, 2022
62.6
 61
60.5
 1.6