- Services PMI 52.4 vs. 52.5 expected and 52.1 prior.
- Manufacturing PMI 51.8 vs. 51.1 expected and 50.9 prior.
- Composite PMI 52.7 vs. 52.6 expected and 52.3 prior.
Key Findings:
- Flash UK PMI Composite Output Index(1) at 52.7 (Jun: 52.3). 2-month high.
- Flash UK Services PMI Business Activity Index(2) at 52.4 (Jun: 52.1). 2-month high.
- Flash UK Manufacturing Output Index(3) at 54.4 (Jun: 53.3). 29-month high.
- Flash UK Manufacturing PMI(4) at 51.8 (Jun: 50.9). 24-month high.
Comment:
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:
“The flash PMI survey data for July signal an encouraging start to the second half of the year, with output, order books and employment all growing at faster rates amid rebounding business confidence, while price pressures moderated."
“The first post-election business survey paints a welcoming picture for the new government, with companies operating across manufacturing and services having gained optimism about the future, reporting a renewed surge in demand and taking on staff in greater numbers. Prices have meanwhile risen at their lowest rate for three and a half years, further raising the prospect of a summer rate cut."
“However, policymakers will likely take a cautious approach to loosening policy amid signs of inflationary pressures pivoting away from services towards manufacturing, where Red Sea shipping delays and higher freight prices are adding to costs again. The renewed hiring trend could also add to pay pressures, sustaining some stickiness of inflation in the coming months.”
