UK service sector report may fuel slowdown fears – business live

Discussion in 'Market News' started by Lily, May 5, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Rolling coverage of the day’s economic and financial news, including a healthcheck on Britain’s dominant service sector

    7.53am BST

    Anxiety over a possible global downturn has hit stock markets in Asia again.

    Markets seem to be at something of a crossroads at present, waiting for clearer signals on whether U.S. activity will bounce back in the second quarter,”.

    “If the global economy were to tip into recession at some point, what ammo, precisely, do central banks have left that won’t do more harm than good?”

    7.40am BST

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    So far this week, the UK economic data has been quite disappointing. Construction firms are growing at the slowest rate in three years, and activity across Britain’s manufacturers is actually shrinking again.

    Both manufacturing and construction PMI’s came in short of expectations with manufacturing slipping into contraction territory for the first time since early 2013.

    Given how important the services sector is to the UK economy we really need to see a decent number here or run the risk that we see a growth downgrade next week from the latest Bank of England inflation report. Expectations are for a slight decline to 53.6 from 53.7.

    Our European opening calls:$FTSE 6134 up 22
    $DAX 9863 up 34
    $CAC 4330 up 5$IBEX 8694 up 40$MIB 18038 up 102

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