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    UK S&P Global/CIPS Composite PMI rises to 52.5 in January vs. 52.2 expected

    Source Fxstreet
    Jan 24, 2024 09:37
    • S&P Global/CIPS PMIs for January came in above expectations.
    • GBP/USD climbed above 1.2750 on upbeat PMI figures.

    Economic activity in the UK's private sector continued to expand at an accelerating pace in January, with S&P Global/CIPS Composite PMI rising to 52.5 in January's flash estimate from 52.1 in December. This print came in above the market consensus of 52.2.

    S&P Global/CIPS Manufacturing PMI edged higher to 47.3 from 46.2 in the same period, while the Services PMI advanced to 53.8 from 53.4.

    Commenting on the report, "the surprising strength of growth in January, which has exceeded forecasts, may deter the Bank of England from cutting interest rates as soon as many are expecting, especially as supply disruptions in the Red Sea are reigniting inflation in the manufacturing sector," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence Supply.

    "Supply delays have spiked higher as shipping is re-routed around the Cape of Good Hope, the longer journey times lifting factory costs at a time of still-elevated price pressures in the service sector. Inflation is therefore indicated to remain stubbornly higher in the 3-4% range in the near future," Williamson added. 

    Market reaction

    GBP/USD gathered bullish momentum on the upbeat PMI readings and was last seen rising 0.6% on the day at 1.2760.

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
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    Australia's Judo Bank Services PMI improves to 53.1 in February, up from the last 49.1Australia's Judo Bank Services Purchasing Managers Index rose to a ten-month high of 53.1 in February, climbing back above the 50.0 contractionary level and climbing over the previous print of 49.1.
    Source  Fxstreet
    Australia's Judo Bank Services Purchasing Managers Index rose to a ten-month high of 53.1 in February, climbing back above the 50.0 contractionary level and climbing over the previous print of 49.1.
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    The ECB is expected to start the rate cuts in June – NordeaEuro Area inflation continued to slow down in February. Economists at Nordea continue to expect the first rate cut in June Euro area inflation falls Euro Area headline inflation slowed down to 2.6% (2.8% in January) and core inflation to 3.1% (3.3%) in February.
    Source  Fxstreet
    Euro Area inflation continued to slow down in February. Economists at Nordea continue to expect the first rate cut in June Euro area inflation falls Euro Area headline inflation slowed down to 2.6% (2.8% in January) and core inflation to 3.1% (3.3%) in February.
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    Fed's Williams: rate cuts likely in H2 2024President of the New York Federal Reserve (Fed) John Williams spoke about his outlook on the Fed's rate stance during an interview with Axios.
    Source  Fxstreet
    President of the New York Federal Reserve (Fed) John Williams spoke about his outlook on the Fed's rate stance during an interview with Axios.
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