Britain’s Services PMI down to 51.1; year low
The second biggest drop in a decade is seen in the Services Sector in the United Kingdom. Servies PMI fell from July's 55.4 to a massive drop at 51.1 for August. Economists expected a drop from 55.4, but estimations pointed at smaller drop of 1.1, to 54.3.
August's Index was also the lowest recorded all year in 2011.
The previous big fall in a period of a month occured around one decade prior to today's release; the reasoning for the 2001 index fall was the foot-and-mouth-disease outbreak seen in the United Kingdom. More than ten million sheep were put to death in order to hault the disease. The said outbreak caused a stir and great trouble for U.K's agriculture and tourism; causing the U.K lots of billions of Pounds in damage.
The British Pound saw a downfall after the news release, EUR/GBP fell from 0.8790 to 0.8765 within half an hour and then progressed down to 0.8756.
