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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jun/03/markets-await-services-data-for-clues-on-uk-economy-business-live
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| UK services sector grows in May - business live | UK services sector grows in May - business live |
| (35 minutes later) | |
| 10.44am BST | |
| 10:44 | |
| BHS collapse: Sir Phillip Green accused of 'lamentable behaviour' | |
| In other UK news, Sir Philip Green has received more criticism over BHS - the high street retail chain he sold for £1 last year that has now collapsed with the loss of 11,000 jobs. | |
| Simon Walker, the head of the Institute of Directors accused Green of a “lamentable failure of behaviour” that risked “deeply damaging” the British business world as a whole. | |
| He told BBC radio 4: | |
| Sir Philip Green is a very high-profile business leader. He is the person who is on the front page with Kate Moss on his arm and who has a £100m superyacht and so on. | |
| When someone like this ends up behaving like this, people think that’s how business is, and it’s not. The majority of business leaders are people who are more likely to have mortgaged their homes to keep their company going than to own this kind of lavish thing. | |
| Read our full story here. | |
| Green will face questions by MPs on 15 June over his role in the demise of BHS. | |
| 10.24am BST | |
| 10:24 | |
| Here is the breakdown of how UK services companies felt their businesses were being affected by the looming possibility of Brexit... | |
| 10.11am BST | 10.11am BST |
| 10:11 | 10:11 |
| Markit’s chief economist, Chris Williamson, was not overly cheered by the better-than-expected services PMI number for the UK. | Markit’s chief economist, Chris Williamson, was not overly cheered by the better-than-expected services PMI number for the UK. |
| He says that taking into account all the data for the second quarter so far, growth is on course to halve between April and June, following 0.4% growth in the first quarter. | He says that taking into account all the data for the second quarter so far, growth is on course to halve between April and June, following 0.4% growth in the first quarter. |
| The PMI surveys show that the pace of economic growth remained subdued in May, as Brexit worries exacerbated existing headwinds. The data so far indicate that the second quarter is likely to see the economy grow by just 0.2%. | The PMI surveys show that the pace of economic growth remained subdued in May, as Brexit worries exacerbated existing headwinds. The data so far indicate that the second quarter is likely to see the economy grow by just 0.2%. |
| Growth has collapsed in manufacturing and construction, leaving the economy dependent on the service sector to sustain the upturn, though even here the pace of expansion has remained frustratingly weak so far this year. | Growth has collapsed in manufacturing and construction, leaving the economy dependent on the service sector to sustain the upturn, though even here the pace of expansion has remained frustratingly weak so far this year. |
| The detail of the PMI survey showed that UK services sector companies took on workers at the slowest rate in more than three years. | The detail of the PMI survey showed that UK services sector companies took on workers at the slowest rate in more than three years. |
| 10.02am BST | 10.02am BST |
| 10:02 | 10:02 |
| The better-than-expected UK services PMI should come as a relief to investors. | The better-than-expected UK services PMI should come as a relief to investors. |
| A weaker number for May would have started to build a more worrying picture of how the UK economy is performing in the second quarter. | A weaker number for May would have started to build a more worrying picture of how the UK economy is performing in the second quarter. |
| The big fear is that if Britain votes to leave the EU when it goes to the polls on 23 June, the UK will slide back into recession at a time when the economy is not fully healed following the last crisis. | The big fear is that if Britain votes to leave the EU when it goes to the polls on 23 June, the UK will slide back into recession at a time when the economy is not fully healed following the last crisis. |
| In May’s PMI, Markit asked UK services companies an additional question: | In May’s PMI, Markit asked UK services companies an additional question: |
| “Please state the extent to which the issue of the UK’s potential exit from the EU is currently affecting your business.” | “Please state the extent to which the issue of the UK’s potential exit from the EU is currently affecting your business.” |
| Of those taking part in the survey, 28% said a potential Brexit was having a detrimental impact on business, while 9% said it was having a strongly detrimental impact. | Of those taking part in the survey, 28% said a potential Brexit was having a detrimental impact on business, while 9% said it was having a strongly detrimental impact. |
| On the flip side, 51% said it was having no significant effect. | On the flip side, 51% said it was having no significant effect. |
| 9.33am BST | 9.33am BST |
| 09:33 | 09:33 |
| UK services sector grows in May | UK services sector grows in May |
| Breaking: The UK services sector grew at a faster rate than expected in May. | Breaking: The UK services sector grew at a faster rate than expected in May. |
| The headline index on the Markit/CIPS PMI increased to 53.5 from 52.3 in April. Economists were expecting a smaller rise to 52.5. Anything above 50 indicates expansion. | The headline index on the Markit/CIPS PMI increased to 53.5 from 52.3 in April. Economists were expecting a smaller rise to 52.5. Anything above 50 indicates expansion. |
| 9.29am BST | 9.29am BST |
| 09:29 | 09:29 |
| So Italy let the side down on an otherwise positive set of services PMIs for the eurozone. | So Italy let the side down on an otherwise positive set of services PMIs for the eurozone. |
| Chris Williamson, chief economist at Markit, said combined with the manufacturing surveys published earlier in the week, the latest PMIs suggested the eurozone economy was moving along at a sluggish pace. | Chris Williamson, chief economist at Markit, said combined with the manufacturing surveys published earlier in the week, the latest PMIs suggested the eurozone economy was moving along at a sluggish pace. |
| He suggested the growth of 0.5% achieved in the first quarter would not be sustained into the second: | He suggested the growth of 0.5% achieved in the first quarter would not be sustained into the second: |
| The final PMI numbers for May have come in slightly ahead of the earlier flash readings, but still point a eurozone economy which seems unable to move out of low gear. | The final PMI numbers for May have come in slightly ahead of the earlier flash readings, but still point a eurozone economy which seems unable to move out of low gear. |
| The survey data are signalling a GDP rise of 0.3% in the second quarter, suggesting the growth spurt seen at the start of the year will prove frustratingly short-lived. | The survey data are signalling a GDP rise of 0.3% in the second quarter, suggesting the growth spurt seen at the start of the year will prove frustratingly short-lived. |
| 9.19am BST | 9.19am BST |
| 09:19 | 09:19 |
| Eurozone services sector grows | Eurozone services sector grows |
| The eurozone’s services sector expanded at the fastest rate in three months in May, boosted by growth in Germany, France, Spain and Ireland. | The eurozone’s services sector expanded at the fastest rate in three months in May, boosted by growth in Germany, France, Spain and Ireland. |
| The headline index measuring activity on the Markit PMI survey edged up to 53.3 last month from 53.1 in April. | The headline index measuring activity on the Markit PMI survey edged up to 53.3 last month from 53.1 in April. |
| Employment in the eurozone’s services industry increased for a nineteenth month, with jobs created at the fastest rate in Germany and Ireland. | Employment in the eurozone’s services industry increased for a nineteenth month, with jobs created at the fastest rate in Germany and Ireland. |
| Italy’s services sector fared less well than its neighbours in the single currency bloc, with the headline index pointing to a contraction in activity in May. | Italy’s services sector fared less well than its neighbours in the single currency bloc, with the headline index pointing to a contraction in activity in May. |
| 8.54am BST | 8.54am BST |
| 08:54 | 08:54 |
| European markets open higher | European markets open higher |
| All major indices are higher this morning after Wall Street closed up last night. | All major indices are higher this morning after Wall Street closed up last night. |
| Investors are holding their nerve so far. There were no nasty shocks on Thursday from the European Central Bank’s meeting of the governing council in Vienna, where all policy measures were left on hold. | Investors are holding their nerve so far. There were no nasty shocks on Thursday from the European Central Bank’s meeting of the governing council in Vienna, where all policy measures were left on hold. |
| 8.35am BST | 8.35am BST |
| 08:35 | 08:35 |
| Spanish services sector shows strength | Spanish services sector shows strength |
| Activity in Spain’s services sector grew at an accelerated pace in May according to the Markit PMI survey. | Activity in Spain’s services sector grew at an accelerated pace in May according to the Markit PMI survey. |
| The headline index increased to 55.4 from 55.1 in April. It was better than the 53.5 forecast by economists, and will no doubt be a source of relief for investors following weaker manufacturing numbers earlier in the week. | The headline index increased to 55.4 from 55.1 in April. It was better than the 53.5 forecast by economists, and will no doubt be a source of relief for investors following weaker manufacturing numbers earlier in the week. |
| Andrew Harker, senior economist at Markit and author of the PMI report, said: | Andrew Harker, senior economist at Markit and author of the PMI report, said: |
| Following on from Wednesday’s disappointing Spain manufacturing PMI numbers, the latest services data are something of a relief, with growth in activity and new business ticking up slightly. | Following on from Wednesday’s disappointing Spain manufacturing PMI numbers, the latest services data are something of a relief, with growth in activity and new business ticking up slightly. |
| The figures provide hope that the sector will be able to successfully weather headwinds such as a weak global environment and domestic political instability and remain in growth territory in the near-term at least. | The figures provide hope that the sector will be able to successfully weather headwinds such as a weak global environment and domestic political instability and remain in growth territory in the near-term at least. |
| 8.23am BST | 8.23am BST |
| 08:23 | 08:23 |
| Oil prices hover above $50 | Oil prices hover above $50 |
| Brent crude oil has edged higher this morning, up 0.3% at $50.2 a barrel. | Brent crude oil has edged higher this morning, up 0.3% at $50.2 a barrel. |
| It appears that a stalemate at Opec’s meeting in Vienna on Thursday - where Tehran refused to support a plan by Riyadh and others to freeze their crude output - has been partially offset by the latest US stockpiles data. | It appears that a stalemate at Opec’s meeting in Vienna on Thursday - where Tehran refused to support a plan by Riyadh and others to freeze their crude output - has been partially offset by the latest US stockpiles data. |
| US crude stockpiles fell 1.4m barrels last week, reducing supplies for a second week according to the figures from the Energy Information Administration. | US crude stockpiles fell 1.4m barrels last week, reducing supplies for a second week according to the figures from the Energy Information Administration. |
| 7.58am BST | 7.58am BST |
| 07:58 | 07:58 |
| The Agenda: services PMIs and US payrolls | The Agenda: services PMIs and US payrolls |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| It’s all eyes on the service sector this morning as the PMI reports for May are published for the UK and the eurozone. | It’s all eyes on the service sector this morning as the PMI reports for May are published for the UK and the eurozone. |
| In the UK, the Markit/CIPS report will be closely watched by investors looking for clues on how the wider economy is doing in the second quarter. | In the UK, the Markit/CIPS report will be closely watched by investors looking for clues on how the wider economy is doing in the second quarter. |
| Economists are predicting the monthly survey will paint a stable picture of the the sector, which accounts for more than three quarters of the UK economy. | Economists are predicting the monthly survey will paint a stable picture of the the sector, which accounts for more than three quarters of the UK economy. |
| The headline index is predicted to rise to edge up to 52.5 in May from 52.3 in April, where anything above 50 signals an expansion in activity. | The headline index is predicted to rise to edge up to 52.5 in May from 52.3 in April, where anything above 50 signals an expansion in activity. |
| If the number comes in below that, investor nerves - already shot in the run up to the EU referendum - are likely to rise. | If the number comes in below that, investor nerves - already shot in the run up to the EU referendum - are likely to rise. |
| As Michael Hewson chief market analyst at CMC Markets, puts it: | As Michael Hewson chief market analyst at CMC Markets, puts it: |
| We’ll get further colour on whether the UK economy has hit a partially self-inflicted slump brought about by all the hysteria surrounding the upcoming referendum vote. | We’ll get further colour on whether the UK economy has hit a partially self-inflicted slump brought about by all the hysteria surrounding the upcoming referendum vote. |
| A poor number here could well raise concerns about a potential negative quarter for the UK economy, in the process increasing speculation about a possible rate cut by the Bank of England. | A poor number here could well raise concerns about a potential negative quarter for the UK economy, in the process increasing speculation about a possible rate cut by the Bank of England. |
| What was that about a possible DIY recession? | What was that about a possible DIY recession? |
| Also coming up..... | Also coming up..... |
| We will get the eurozone services PMIs, and this afternoon the closely watched non-farm payrolls report will be published in the US. | We will get the eurozone services PMIs, and this afternoon the closely watched non-farm payrolls report will be published in the US. |
| Will the jobs report make the Fed more likely or less likely to raise US interest rates in the near future? We will bring you all the reaction. | Will the jobs report make the Fed more likely or less likely to raise US interest rates in the near future? We will bring you all the reaction. |
| Updated | Updated |
| at 8.02am BST | at 8.02am BST |