Yesterday's session was marked by UK Services PMI data. The UK’s dominant service sector lost momentum in February, according to the latest PMI survey data from Markit and CIPS. Growth of both total business activity and new business were the weakest since March 2013, leading firms to raise employment at the slowest pace in two-and-a-half years. The seasonally adjusted Business Activity Index fell to 52.7 in February, from 55.6 in January. This signalled the slowest rise in service sector activity since March 2013. Moreover, the Index was below its long-run trend level (since July 1996) of 55.2. Nevertheless, services output has risen continuously for 38 months, the second-longest sequence of expansion in the survey history.
In the US session,
Unemployment Claims and Non-Manufacturing PMI figures were released.
In the week ending February 27, the advance figure for seasonally adjusted initial claims was 278,000, an increase of 6,000 from the previous week's unrevised level of 272,000. The 4-week moving average was 270,250, a decrease of 1,750 from the previous week's unrevised average of 272,000. Analysts were expecting decrease to 271,000.
The Non-Manufacturing PMI Index registered 53.4 percent in February, 0.1 percentage point lower than the January reading of 53.5 percent. This represents continued growth in the non-manufacturing sector at a slightly slower rate. According to the NMI, 14 non-manufacturing industries reported growth in February. The majority of the respondents' comments continue to be positive about business conditions. The respondents are projecting a slight optimism in regards to the overall economy.
There will be no major data releases from the UK tomorrow. In the US session NFP and Trade Balance figures will be released. Analysts predict incline to 195,000 in NFP, while Unemployment Rate should remain unchanged at 4.9%. Trade Balance deficit should widen to $43.8 billion.
Figures to watch:
Non-Farm Employment Change/Unemployment Rate/Average Hourly Earnings (Friday 14:30)
Trade Balance (Friday 14:30)
