April 4 - Sterling jumps after an unexpected rise in the UK services PMI shows the recovery taking hold.
▲ Hide Transcript
▶ View Transcript
55 point three that's the reading for the UK services PMI from ought to almost two full points about the 53 point four. Expected by economists in Reuters poll more evidence than. And the recovery taking hold in Branson. With me is Chris Williamson chief economist at -- data compiled as market. Chris this is a good number what does -- say if -- -- GDP. This is very good. Them again when we're looking at GDP growth quote unquote fiscal quarter probably around point 5% may be strong stuff what was driving this. Well there's just been in general attending business we've seen earlier in the week that we've got manufacturing ticking along at a reasonable pace construction. A -- -- -- says that might use the web all of you contracts coming in. An opening in the service takes it seems fairly April place and some financial services and growth haven't and McCain. I would go business to business that is growing quite nicely -- what if anything -- -- massive sect that still very much under pressure but the business sector is driving growth and -- And the expectations. Come. It does is is the highest it's been -- a year. Which would suggest there isn't a slowdown necessarily count. Now there's there's good signals for the second quarter we're gonna see some ongoing growth had the big uncertainty of course is to be addicted to jubilee. Which we know you could depress GDP you've got my point 5%. So if we are taking -- longer an underlying -- about point five said that there is a risk that does not impact could johnsons another contraction again in the second quarter besides the temperate. Had a nice little blip up in -- just now I don't. If you you make this points from. That deep confidence going forward is encouraging businesses. Sent to hire more people the employment component is up -- lost. Well hopefully yes -- -- based on confidence isn't it if if companies have some transparency. About the outlook that there is great -- the year ahead. Then they'll take more stuff to me that this is great and that's actually what was saying that's business confidence the last two months free yeah that you're with -- sustaining it and it wasn't just to take up and in February it's how old. So this is very good things to worry about inflation. Had not seen much -- -- in them so will we we had Inco prosper suggested coming down. In this one so. While we do have oil which is pushing up input costs insecticide -- forward to see an increase in of the -- is it's being held down by a couple of -- which is very low wage growth. And also just since you fundamentally or that we're growing it's a very weak trade and it's not strong -- to lead tonight's woman to man who inflation pressures. Okay Chris many -- back Chris Williamson of market. Join us weekdays and eleven GMT for market -- and to what's moving and why I'm -- -- -- this is -- --
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code