UK PMI Services was finalized at 52.5 in July, up from June’s 52.1. PMI Composite was finalized at 52.8, up from June’s 52.3.
Joe Hayes, Principal Economist at S&P Global Market Intelligence, noted that the UK service sector saw a “modest rebound” following a subdued end to Q2. Business Activity Index saw a slight uptick, but New Business Index jumped by over three points to its highest level in 14 months, reflecting an influx of new clients and contracts. Hayes pointed out that the accelerated expansion in sales activity indicates improved business and consumer confidence, suggesting a positive outlook for GDP growth in Q3.
Hayes highlighted ongoing issues with “sluggish progress on inflation.” While price pressures on input costs and output prices are at their lowest since early 2021, the respective PMIs remain above pre-pandemic levels. These benchmarks are critical for BoE to hit before it can declare success in combating inflation.
