DAVY VIEW

Yesterday's UK Services PMI staged a sharp rebound to 53.9 in January, up from 50 in December. Services sector companies noted that reduced Brexit uncertainty and the December election result had helped orders, which rose at their fastest pace since mid-2018. The uptick in the Services PMI probably means that UK GDP expanded by at least 0.2% in Q1 2020, ruling out a Bank of England rate cut in the coming months.