UK PMI Services was finalized at 51.5 in July, down from June’s 53.7. PMI Composite was finalized at 50.8, down from June’s 52.8, sparking concerns over the possibility of an economic stagnation in the coming months.
Tim Moore, Economics Director at S&P Global Market Intelligence: “The loss of momentum signalled by service providers in July suggests that the UK economy is set to flatline at best in the coming months.
“There were sporadic reports that subdued demand had led to more competitive pricing and the pass through of lower fuel costs, which contributed to a slowdown in output charge inflation to its second-lowest since August 2021.
“However, there was no let-up in pressure on business expenses as the rate of input cost inflation was virtually unchanged from that seen on average in the second quarter of 2023.
“Survey respondents widely commented on strong cost pressures due to higher salary payments in July, which will add to concerns among policymakers that sticky inflation and stagnant growth will prove a persistent challenge for the UK economy during the second half of the year.”