In June, activity accelerated in services. At 56.9, the CIPS activity index reached its highest level since March 2011. This good news comes on top of better prospects for manufacturing and construction sectors in Q2. Overall, the PMI composite index improved further.
In June, activity once more accelerated in services according to the CIPS market survey as the CIPS services activity index (to 56.9 from 54.9) reached its highest level since March 2011.
The services PMI composite, above the 50-threshold for the sixth month in a row (at 55.8, up from 53.8 in May), even reached its highest level in six years. Moreover the evolution of leading indicators of the survey was especially encouraging. Both new business index and business expectations index further increased from May to June. The incoming new business index, up by 2.1 points, even reached its highest level since the summer 2007 (to 59.3, after 57.2).
The employment index increased and was above the 50-threshold for the sixth month in a row (to 53.7, after 51.4 in May) and is likely to support household’s confidence and spending. Finally input and output prices indices rose (respectively to 55.5 and 51.5, after 53.5 and 49.7 in April). However the rise was limited and came after a decrease in May.
These data are consistent with EC survey. After having sharply increased in the first quarter of 2013 (+0.5% q/q), activity in services (more than 75% of Gross value added) may increase further in Q2 2013. This is particularly a good news as additionally, the performance of manufacturing and construction sectors may show an improvement in Q2 in comparison with Q1 (respectively -0.2% q/q and -1.8% q/q in Q1). Indeed the PMI indices for activity were up in these sectors in June (respectively to 55 and 51 after 54.7 and 50.8 in May).
Overall, the PMI composite index for activity, up by 1.7 points (to 56.5), reached its highest level since March 2011. GDP, up by 0.2% q/q in Q1 2013, is set to keep growing. There is thus little chance that the Bank of England decides to more QE this week. The new governor Mark Carney should wait before announcing a change in the monetary policy.
BY Catherine STEPHAN
To Read the Entire Report Please Click on the pdf File Below.
In June, activity once more accelerated in services according to the CIPS market survey as the CIPS services activity index (to 56.9 from 54.9) reached its highest level since March 2011.
The services PMI composite, above the 50-threshold for the sixth month in a row (at 55.8, up from 53.8 in May), even reached its highest level in six years. Moreover the evolution of leading indicators of the survey was especially encouraging. Both new business index and business expectations index further increased from May to June. The incoming new business index, up by 2.1 points, even reached its highest level since the summer 2007 (to 59.3, after 57.2).
The employment index increased and was above the 50-threshold for the sixth month in a row (to 53.7, after 51.4 in May) and is likely to support household’s confidence and spending. Finally input and output prices indices rose (respectively to 55.5 and 51.5, after 53.5 and 49.7 in April). However the rise was limited and came after a decrease in May.
These data are consistent with EC survey. After having sharply increased in the first quarter of 2013 (+0.5% q/q), activity in services (more than 75% of Gross value added) may increase further in Q2 2013. This is particularly a good news as additionally, the performance of manufacturing and construction sectors may show an improvement in Q2 in comparison with Q1 (respectively -0.2% q/q and -1.8% q/q in Q1). Indeed the PMI indices for activity were up in these sectors in June (respectively to 55 and 51 after 54.7 and 50.8 in May).
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Overall, the PMI composite index for activity, up by 1.7 points (to 56.5), reached its highest level since March 2011. GDP, up by 0.2% q/q in Q1 2013, is set to keep growing. There is thus little chance that the Bank of England decides to more QE this week. The new governor Mark Carney should wait before announcing a change in the monetary policy.
BY Catherine STEPHAN
To Read the Entire Report Please Click on the pdf File Below.
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