- Final Manufacturing PMI 52.5 vs. 52.4 prelim and 52.1 prior.
- Final Composite PMI 52.8 vs. 52.7 prelim and 52.3 prior.
Key findings:
- Demand for UK services rises at fastest pace since May 2023.
- Business confidence rebounds to five-month high.
- Price pressures remain strong.
Comment:
Joe Hayes, Principal Economist at S&P Global Market Intelligence said:
"With the general election period coming to an end at the start of July, survey data for last month showed the UK service sector enjoyed a modest rebound after a fairly subdued end to Q2. The Business Activity Index crept up only slightly, but the New Business Index jumped by over three points to its highest level in 14 months as firms reported an influx of new clients and contracts."
"July's accelerated expansion in sales activity crucially suggests business and consumer confidence has improved, and albeit only one month into the second half of 2024, the latest survey results bode well for a reasonable GDP growth print in Q3."
"Still, there continues to be sluggish progress on inflation. The positive takeaway is that price pressures, both regarding input costs and output prices, are at their lowest since early 2021. The concern, however, will be that the respective PMIs are still well above their pre- pandemic trends, and these are the benchmarks for the Bank of England to hit before claiming the fight against inflation is over."
