The UK economy showed marginal improvement in June, with PMI Composite inching from 50.3 up to 50.7, suggesting the economy is narrowly expanding. PMI Services rose from 50.9 to 51.3, while Manufacturing remained below the 50 threshold, albeit improving from 46.4 to 47.7.
S&P Global’s Chris Williamson described the picture as one of “lackluster” activity, with data pointing to just 0.1% GDP growth in Q2. Beyond weak growth, the survey flagged ongoing uncertainty from recent UK policy shifts, global trade frictions, and geopolitical instability, including increased Middle East tensions.
Crucially, inflationary pressures have cooled significantly because of the above developments. With growth near stall speed and inflation slowing, the path is opening for BoE to deliver another rate cut in August.
