UK Service Sector Index Falls Sharply Again and May Be Signaling That More Losses Lie Ahead

December 5, 2007

By Robert Brusca

· The UK services PMI from NTC is falling sharply. It dropped sharply in October and again in November. Among the three key PMI sectors, manufacturing, construction and services, the services index has the weakest reading as it resides in the 32nd percentile of its range. There are only three episodes since 1998 when the services reading was weaker than it is now. Each time in the past when the service sector index fell to where it stands today, it was simply on its way to a much lower level. Be advised. 

MFG, Construction and Services PMI CIPS/NTC
 

Monthly readings

Change over:

percentile
 

Nov-07

Oct-07

3MO

6MO

12MO

of range

MFG

54.38

52.82

-1.61

-0.38

1.61

65.8

Construction

54.32

57.41

-10.50

-3.69

-0.46

36.1

Services

51.95

53.08

-5.60

-5.23

-7.83

32.9

MFG range since January 1992; Construction Since April 1997 Services Since July 1996

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