UK PMI Surveys: Partial rebound coming – RBS

Ross Walker, Research Analyst at RBS, suggests that the manufacturing and construction PMI surveys for August are the UK data highlights of the this week.

Key Quotes

“After hefty falls in July in the aftermath of the referendum vote to leave the EU we look for partial rebounds in August as some of the initial shock wears off, mirroring some of the other high-frequency surveys. It does not follow that the UK’s medium-term outlook has improved materially. The economy was never going to disintegrate within a month or two of the referendum. Brexit will be more of a slow burn as capex is scaled back and, with a lag, deteriorating employment trends dampen consumer demand. We continue to characterise the UK outlook more as a period of persistent sub-trend growth rather than a financial crisis-style collapse.”