British services leave contraction in April

  • by Ahmed Mamdouh
  • May 3, 2019, 12:53 AM
  • 52 Views
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British services sector has left the contraction zone in April, showing improvement at the beginning of the second quarter.

U.K. services PMI came in at 50.4 last month, matching forecasts, from 48.9 in March.

Data released on Thursday also showed that U.K. construction registered an expansion of 50.5 from March’s contraction of 49.7, while the manufacturing gauge fell to a two-month low of 53.1.

The BOE statement signaled that U.K. GDP is expected to have grown by 0.5 percent in the first quarter of 2019, but the pace would slow to around 0.2 percent in the second quarter, given the current slowdown in global growth and Brexit uncertainties.

As of 08:50 GMT, the pound traded lower at $1.3019 on Friday, as BOE Deputy Governor Ben Broadbent said Brexit was having unprecedented impact on business investment.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at Ofeed.com, with 11 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from the American University in Cairo and a Bachelor Degree in Economics from the Faculty of Economics and Political Science, Cairo University.

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