Services industry gained momentum
Pound jumped to a five-day high today to $1.3201 after data from Markit/CIPS revealed that Britain’s services industry grew last month at its fastest rate since October.
After a weak start to 2018, the Purchasing Managers’ Index (PMI) unexpectedly rose to an eight-month high of 55.1 in June, beating economists’ average forecast of 54.0.
Taken together, the three PMIs point to overall economic growth of 0.4 per cent in the second quarter, up from 0.2 per cent in the first three months of the year.
“Stronger growth of service sector activity adds to signs that the economy rebounded in the second quarter and opens the door for an August rate hike, especially when viewed alongside the news that inflationary pressures spiked higher,” IHS Markit economist Chris Williamson added.