UK PMIs to echo mixed tone of economy – SocGen

By FXStreet FXStreet (Delhi) – Research Team at Societe Generale, suggests that the outlook for manufacturing industry across the western world looks weak with the transmission of the hard landing of the industrial sector of the Chinese economy to western markets.

Key Quotes

“Accordingly, despite reasonably strong domestic demand, manufacturing demand in aggregate is looking soft. We thus expect the PMI to weaken a little further from 51.9 to 51.4.

The construction PMI should continue to be supported by robust housing construction. The most surprising feature in the detail of the last survey was the outperformance of commercial construction which was even stronger than housing. This seems unlikely to persist. Overall we expect a small decline from 57.8 to 57.2 which still indicates very strong growth in construction output in stark contrast to the weakness of the official data.

The services sector continues to perform strongly but the services PMI looks a little bit softer than the underlying drivers would suggest. We predict that the PMI will rise from 55.5 to 55.8.”
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Source:: FX Street