The U.K. services sector weakened to an eight-month low in June according to a business survey released today. The Markit/CIPS purchasing managers’ index (PMI) for the services sector came in at 51.3 in June, below May’s 53.3 and lower than expectations for a more moderate easing to 52.8.
This data is important since the services sector in the U.K. is one of the biggest and accounts for around three quarters of output. Even though the reading was above the 50 level which signals growth, Markit said the latest figures suggest the sector grew by only 0.2 percent last quarter.
The gloomy data will only further add to the likelihood of more quantitative easing by the Bank of England when it holds its policy meeting on Thursday.
Ahead of the data at 08:30 GMT, GBPUSD declined until it reached a low of 1.5629 then it bounced on profit taking to 1.5656 after the data, in a classic “buy the rumour, sell the fact” scenario.