- Prior 52.5
- Manufacturing PMI 52.5 vs 52.1 expected
- Prior 52.1
- Composite PMI 53.4 vs 52.9 expected
- Prior 52.8
The resilience in the UK economy is certainly commendable and this will ease pressure on the BOE to force rate cuts. But the good news in the report here is that price pressures have also eased on the month. Input cost inflation fell to its lowest in just over three-and-a-half years, so there's that. However, service providers did note that wage inflation remains elevated so it's not all plain sailing just yet. S&P Global notes that:
“August is witnessing a welcome combination of stronger economic growth, improved job creation and lower inflation, according to provisional PMI survey data.
“Both manufacturing and service sectors are reporting solid output growth and increased job gains as business confidence remains elevated by historical standards.
“Although GDP growth looks set to weaken in the third quarter compared to the impressive gains seen in the first half of the year, the PMI is indicative of the economy expanding at a reasonably solid quarterly rate of around 0.3%.
“Inflationary pressures have meanwhile moderated further in August, including notably in the service sector, which has been a key area of concern for the Bank of England. “The latest survey data therefore help lower the bar for further interest rate cuts, although the still-elevated nature of inflation in the service sector suggests that policymakers will move cautiously.”