(JJB.L) JJB Sports PLC Buy/Sell

Purchasing Manager Index Services (Oct)
Actual: 56.9 Cons.: 55.5 Previous: 55.3

The PMI service released by both the Chartered Institute of Purchasing & Supply and the Markit Economics is an indicator of the economic situation in the UK services sector. It captures an overview of the condition of sales and employment. It is worth noting that the UK service sector does not influence, either positively or negatively, the GDP as much as the Manufacturing PMI does. Traders want the highest possible reading as that will be taken as positive for the GBP. Any reading above 50 signals expansion, while a reading under 50 shows contraction.

Further to this, and Lockstock's last post regarding sector news, is the news that retailers are boosting the markets today.

From ADVFN:

Good news from two major retailers has boosted sentiment with a late rally on Wall Street also helping the mood.

High street giant Marks & Spencer produced interim results right at the top of expectations, with underlying profits rising slightly as food sales improved for a fourth quarter in a row. Adjusted profit before tax was slightly ahead of last year at £298.3m. Most analysts had expected profits of about £290m.

Fashion chain Next has upped its guidance for second half sales up to Christmas Eve after reporting better than expected sales in the third quarter. Retail like-for-like sales dropped 1.3% in the three month ended 31 October, while directory sales were up 5.1%, with both Next Retail and Next Directory performing ahead of the second half guidance the group gave in September.

Trading conditions are also on the mend for shopping centre owner Liberty International. The retail tenant market still faces challenges but activity levels are on the up while the number of retailers going belly up declined substantially in the third quarter, the company said.

Green shoots. No Pandas!

Regards,

per ardua ad astra