UK Next week: PMI and Brexit - Danske Bank

Analysts at Danske Bank expect UK services PMI to show a rise next week but they warn that Brexit will remain in focus ahead of the EU summit in late June.

Key Quotes:

“In the UK next week, we only have one important data release, which is the PMI service index for May due out on Tuesday. PMI growth was just 0.1% q/q in Q1 and the service index in April showed no signs of a rebound. However, the service confidence indicator in May was encouraging, as it indicates service sector growth was stronger in May. Also Lloyds Business Barometer rose in May. Hence, we expect an increase in PMI service to 53.5 from 52.8.”

“Brexit remains in focus, as the important EU summit on 28-29 June is fast approaching. The Government has said it is going to lay out its position on customs and trade in a White Paper set for release in June. Also, the House of Commons is going to discuss the House of Lord’s amendments to the EU withdrawal bill, which is going to be a war between the soft and hard Brexiteers. Unfortunately, we do not have any exact dates.”