UK S&P Global/CIPS Composite PMI rises to 52.5 in January vs. 52.2 expected
Source Fxstreet
- 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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Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
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Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
