UK: Services PMI to reverse its previous two months’ losses - TDS

In view of the analysts at TDS, while the UK’s manufacturing and construction PMIs confirmed our downside risks earlier this week, they see scope for the March services PMI to reverse its previous two months’ losses, rising just over half a point to 53.9, versus consensus of a roughly flat reading of 53.4.

Key Quotes

“This could be one last gasp for the sector, however, as real incomes are now declining and consumers in particular are becoming more cautious in their spending plans.”

“Europe: The European parliament votes on their Brexit resolution that will lay down conditions for acceptance of an eventual EU-UK Brexit settlement (which the EU Parliament must approve by simple majority). Importantly, this resolution reaffirms the EU’s stance that the break-up settlement must come before any talks of a trade agreement. This is likely the last we’ll hear from the EU via official centralised channels until the EU27 leaders meet on April 29.”