UK PMI Services was finalized at 50.9 in August, down from July’s 52.6. PMI Composite was finalized at 49.6, down from prior month’s 51.2, the first contraction reading in 18 months.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence:
“UK private sector business activity fell for the first time in a year-and-a-half in August as an increasingly severe downturn in manufacturing was accompanied by a near-stalling of the vast services sector…
“Although the survey data are currently consistent with the economy contracting at a modest quarterly rate of 0.1%, deteriorating trends in order books suggest the incoming prime minister will be dealing with an economy that is facing a heightened risk of recession, a deteriorating labour market and persistent elevated price pressures linked to the soaring cost of energy.”
