The last flash readings of the year for closely watched industry surveys have pointed to further weakness in both the manufacturing and service sector - although this pessimistic outlook may be a little misleading. These data points are often keenly viewed but due to them not capturing last week’s election result they are of secondary importance this time out.
It would not be at all surprising to see significant upwards revisions to these flash estimates later this month, with the markets and business in general reacting positively on the whole to the Conservative victory last week and the final readings should reflect this improvement in sentiment.
The pound has fallen to its lowest level of the day against both the euro and US dollar in response but remains firmly above the level seen before last week’s exit poll was released and it seems like traders will still likely view any weakness as a buying opportunity - at least in the short term.