The UK service sector registered a fall in business activity in July, according to the latest PMI survey data from IHS Markit and CIPS. Output and new business both declined for the first time in over three-and-a-half years, and at the fastest rates since early-2009. Consequently, employment in the sector was unchanged since June, ending a three-and-a-half-year period of uninterrupted job creation. The 12-month outlook for activity weakened sharply to the lowest since February 2009, linked to uncertainty regarding ‘Brexit’.
The Business Activity Index fell to 47.4 in July, from 52.3 in June, signalling a fall in UK services output. This was the first contraction since December 2012, and the rate of decline was the strongest since March 2009. Moreover, the monthon-month decline in the Index in the latest period, at 4.9 points, was the largest observed since the survey began in July 1996.
Sterling is currently being traded around 1.3350 area. Pair is likely to find support around 1.33 handle and resistance above 1.3380 level.
