UK S&P Global Services PMI Final (Dec) 51.4 vs. Exp. 51.3 (Prev. 51.3)

The final reading of the UK S&P Global Services PMI for December came in slightly ahead of expectations, indicating a modest uptick in new business and a recovery in client confidence.

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UK S&P Global Services PMI Final (Dec) 51.4 vs. Exp. 51.3 (Prev. 51.3)

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  • "The most positive development was a renewed upturn in new business intakes, following a slight decline during November. Modest growth of incoming new work was attributed to tentative signs of a recovery in client confidence after an extended period of pre-Budget gloom. Order books were also supported by a marginal rebound in export sales."
  • "Inflationary pressures across the service economy strengthened at the end of the year. Input prices rose to the greatest extent for seven months, and output charge inflation rebounded from November's recent low, despite the subdued demand backdrop."
Context

This data suggests that while there are signs of stabilization in the services sector, inflationary pressures are rising, which may complicate the outlook for monetary policy and growth going forward.

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