Beware: UK services PMI is no crystal ball for QE
Only the last decision for more quantitative easing — July 2012 — came after a decrease in the services PMI’s main index. While members of the Monetary Policy Committee rely on the PMIs as a monthly gauge of economic activity, it’s clear the surveys can’t be read as any proxy for policy decisions.
The outcome of Thursday’s meeting still hangs in the balance.
Graphic by Vincent Flasseur