Services growth slow but economy picks up

5 March, 2012


This morning’s UK services PMI showed that the dominant services sector in the UK grew less than expected in February, but combined with the manufacturing data last week shows that Britain is on course to stave off a second recession.

The British Chambers of Commerce said that Britain will avoid a recession and the Bank of England will not need to inject anymore stimulus, but the recovery will be weak and the government should step up its efforts to boost growth.

This makes the most likely course for sterling unclear, particularly as the Eurozone crisis looks to have been averted for now and we could see some Euro strength in the coming weeks. Later this week we have key data releases in Europe, the USA, Australia, Canada and New Zealand, so check back for the latest currency news as it happens.