The UK Pound Sinks on Weak Private Sector PMI Numbers for May

div classBodysc17zpet90 cdBBJodivpIt was a relatively busy start to the day for the UK market. Private sector PMI figures for May drew market interest this morning.p

pLast week, better than expected retail sales and employment figures delivered strong Pound support. Todays numbers, however, left the Pound in the deep red, with weak service sector activity reigniting fears of a UK recession.pdivdivdiv classBodysc17zpet90 cdBBJodiv

h2 idprelimprivatesectorpmissinkthepoundPrelim Private Sector PMIs Sink the Poundh2

pIn May, the manufacturing PMI fell from 55.8 to 54.6, with the services PMI sinking from 58.9 to a 15month low of 51.8. Economists forecast PMIs of 54.9 and 56.9, respectively.p

pAs a result of the sharp fall in the services PMI, the composite PMI slid from 58.2 to a 15month low of 51.8. Economists forecast a fall to 56.5.p

pAccording to the a hrefhttps:www.markiteconomics.comPublicHomePressRelease00c0cc00756e401abf6bf7bc610f01da relnofollow noopener noreferrer target_blankprelim May surveya,p

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liSurging inflationary pressures and heightened geopolitical risk weighed on customer demand.li

liAt the composite level, the 6.4 index point slide was the fourthlargest on record.li

liService providers recorded the greatest loss of momentum, impacted by economic and geopolitical uncertainty.li

liManufacturers saw production volumes rise at the jointweakest since Oct2021.li

liGoods producers attributed the weaker numbers to supply chain disruption, the war in Ukraine, and inflation.li

liAcross the private sector, new order growth slowed for the third consecutive month.li

liManufacturers reported the steepest fall in export orders since June 2020.li

liAverage cost burdens surged, with input price inflation hitting a survey record.li

liPrices charged inflation softened, however, due to weaker customer demand.li

liBusiness expectations slipped to the lowest level in two years and the decline was most significant in the services sector.li

ul

divdivdiv classBodysc17zpet90 cdBBJodivh2 idmarketimpactMarket Impacth2

pAhead of todays PMI figures, the Pound rose to a prestat and a currentday high of 1.25986.p

pIn response to the numbers, the Pound tumbled to a poststat and a currentday low of 1.24810.p

pAt the time of writing, the a hrefhttps:www.fxempire.comcurrenciesgbpusdPounda was down 0.84 to 1.24817.p

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