views

WHAT DO YOU EXPECT FROM THE SERVICE SECTOR’S PURCHASING MANAGERS’ INDEX?

JONATHAN LOYNES | CAPITAL ECONOMICS"
“Service sector underperformance will probably continue for a few months yet. Service sector output fell less sharply than in these sectors during the recession, limiting the potential for a strong period of growth. The May survey is hard to predict, but it should edge up slightly.”

PHILIP SHAW | INVESTEC
“We are pencilling in 55.7 consistent with the service sector continuing to leave the recent recession behind. While the potential effect of the emergency Budget is unknown, we are happy that, partly due to the service sector, the recovery is beginning to gain some traction.”

ALAN CLARKE | BNP PARIBAS
“We expect the services sector PMI to be unchanged. Although the ash cloud may have mostly cleared, a far darker cloud has emerged – financial market turbulence. This is likely to contribute to less accommodative financial and monetary conditions, suggesting that the services PMI has probably peaked and is likely to lose altitude over the coming months.”