The IHS Markit/CIPS UK Services PMI was revised firmly higher to 50.0 in December 2019 from a preliminary estimate of 49.0 and above November's final 49.3, to signal a stabilisation of overall service sector activity. New work rose modestly following three months of decline, while export sales dipped for the fourth month running, linked to the lack of clarity in relation to Brexit. In addition, employment increased by the most since July while backlogs of work decreased for the fifteenth month in a row. On the price front, average cost burden inflation picked up from the 39-month low recorded in November, mostly attributed to stronger wage pressures, while price charge inflation slowed to its weakest since February 2016. Looking ahead, business optimism was the highest since September 2018 as firms predict a short-term boost to business activity when the first stage of Brexit is resolved. Services PMI in the United Kingdom averaged 53.63 points from 2007 until 2019, reaching an all time high of 62.50 points in October of 2013 and a record low of 40.10 points in November of 2008. source: Markit Economics
Services PMI in the United Kingdom is expected to be 50.40 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in the United Kingdom to stand at 52.50 in 12 months time. In the long-term, the United Kingdom Services PMI is projected to trend around 52.90 points in 2020, according to our econometric models.