Analysts at TD Securities note that, with further declines in the manufacturing and services PMIs for December, the UK’s composite PMI fell to its lowest level since July 2016 in the immediate aftermath of the EU Referendum.

• “The manufacturing index fell from 48.9 to 47.4 (mkt 49.2) and services from 49.3 to 49.0 (mkt 49.5). The Markit report said, "Survey respondents overwhelmingly attributed lower business activity to a combination of domestic political uncertainty, a lack of clarity in relation to Brexit and subdued global economic conditions." The January numbers a month from now will be more significant though, as they'll be the first ones that incorporate the general election results and the easing of political uncertainty.
• Some MPC members believe that a lifting of uncertainty will unleash a wave of pent-up demand, and BoE policy going forward will be highly data-dependent.”