UK: PMI did not fall as much as expected - BBH

The research team at BBH explains that the UK's PMI did not fall as much as expected as it slipped from 57.3 in April to 56.7 in May.  

Key Quotes

“The April reading was the best for at least three years, and the pullback in May is minor.  The past decline in sterling may still be helping the tradeable goods sector.”

“Meanwhile, the focus is on next week's election.  Although the Tories' lead has narrow over the past month, five of the six best known UK pollsters reportedly see it majority growing to at least 40 seats.  The first-past-the-post system allows for a discrepancy between the percentage of the popular vote overall and the number of seats in Parliament.”

“Sterling peaked near $1.2920 yesterday and is not showing the same resilience as yesterday.  It posted an outside up day yesterday, but there has been no follow through buying today.  Yesterday's low was near $1.2770, and it may have to be re-tested.  Pressure is also evident on the crosses, with the euro pushing near GBP0.8750 that has capped it in recent days but appears headed toward GBP0.8800 around the mid-March high.  The high for the year was in mid-January near GBP0.8855.”