The just released survey figures showed that services activity in the UK expanded at better than forecasted pace in June, rebounding from a fall in services PMI in May. The rise has added to signs that the British economy is growing at a healthy pace, recovering from the weakness witnessed earlier this year.The services PMIs from the Euro zone and its peripheral economies earlier today have brightened the growth outlook across the Euro region and indicate that the Greek debt crisis has so far had little discernible impact on the economy. Meanwhile, Greece heads towards a crucial weekend referendum on recent creditor proposals that could decide the nation’s future in the Euro zone.
Britain’s construction activity reading today indicated that the sector performed stronger than market consensus for June, indicating that the economy is on a largely firmer footing compared to the first quarter. Following the recent weakness in manufacturing and an improvement in today’s construction PMI reading, investors will now look forward to the services sector reading scheduled tomorrow to gauge the overall health of the economy in the second quarter.Across the Atlantic, today’s non-farm payrolls report will be important and any positive surprises in the data could raise hopes of a sooner-than-expected rise in interest rates by the Federal Reserve. In Europe, the ongoing crisis in Greece will continue to dominate headlines.
The just released survey data indicated that the expansion in Britain’s manufacturing activity was lower than market consensus for June, with the PMI dropping from May’s level, hurt by a combination of strength in domestic currency and weak business investment. Across the Atlantic, the June ISM manufacturing report later today is keenly anticipated to gauge the level of activity in the nation’s industrial sector. Also in focus will be ADP employment data.In Europe, the final PMI numbers confirmed that Euro zone factory growth picked up slightly in June, in line with expectations. Meanwhile, Greece has become the first advanced nation to miss an IMF payment, but hopes of a new deal have resurfaced after Euro group officials agreed to discussions for a new bailout programme.