- 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.”
This article was written by Giuseppe Dellamotta at www.forexlive.com.
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