UK services get boost from Johnson’s victory as new orders increase

Bloomberg

The UK’s dominant services sector showed signs of strengthening at the end of the year following Boris Johnson’s decisive election victory.
New orders rose at their fastest pace in five months, IHS Markit said on Monday, with anecdotal evidence suggesting that the easing of domestic political uncertainty played a key role. The uptick left services activity with an index reading of 50 in December, up from a flash estimate of 49 that was compiled only using data from before the December 12 vote. The composite measure reached 49.3 from a previous estimate of 48.5.
The pound rose after the figures were published and was trading at $1.31 as of 9:45 am in London.
Johnson’s victory ensures that the UK will leave the European Union (EU) with a transition deal on January 31. Uncertainty created by Brexit has weighed on the outlook since the 2016 referendum.
“The latest UK service sector figures are an improvement,” said Tim Moore, economics associate director at IHS Markit. “The modest rebound in new work provides another signal that business conditions should begin to improve in the coming months.”
Business optimism rose at the fastest pace in more than a year. IHS said a number of respondents predicted a short- term boost to when the first stage of Brexit is resolved
Export orders contracted for a fourth month though as uncertainty related to the UK’s departure from the EU delayed decisions. Data for the final reading were collected beteem December 5-19.