UK: surveys smashing doves in Jan-20
- The services PMI surged to 53.9 in Jan-20: 1-point up on the flash and almost four up on Dec-19. The decisive election outcome has crushed political uncertainty, thereby fuelling a rebound that is smashing the dovish argument about the UK.- I see these data as broadly consistent with my bullish forecast for 0.4% q-o-q Q1 GDP growth, although the coronavirus shock may curb the rebound. As usual, I will review this forecast in light of the forthcoming monthly GDP release.
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