The index Services PMI published by S&P has fallen two points in August in the United Kingdom, standing at 49.5 compared to 51.5 in July. This figure improves the expectations of the market, whose consensus expected a stronger setback, towards 48.7.
After six consecutive months of expansion, the services indicator falls into contraction territory, reaching its lowest level in seven monthssince January 2023.
According to the S&P statement, there have been marginal declines in production and new jobs in August. There has also been the largest reduction in backorders since June 2020. Finally, the burden of price inflation has eased to its lowest level in two years.
GBP/USD reaction
The Pound is collapsing against the Dollar, following in the wake of the Euro, due to the strong risk aversion that favors the US currency. He GBP/USD has fallen after the data to 1.2528, a new low since last June 13. At time of writing, the pair is trading above 1.2538, losing 0.70% daily.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
