August 05, 2024 at 09:30AM
Final Manufacturing PMI 52.5 vs. 52.4 prelim and 52.1 prior.
Final Composite PMI 52.8 vs. 52.7 prelim and 52.3 prior.
Key findings:
Demand for UK services rises at fastest pace since
May 2023.
Business confidence rebounds to five-month high.
Price pressures remain strong.
Comment:
Joe Hayes, Principal Economist at S&P Global Market
Intelligence
said:
“With the general election period coming to an end at the
start of July, survey data for last month showed the UK
service sector enjoyed a modest rebound after a fairly
subdued end to Q2. The Business Activity Index crept up
only slightly, but the New Business Index jumped by over
three points to its highest level in 14 months as firms
reported an influx of new clients and contracts.”
“July’s accelerated expansion in sales activity crucially
suggests business and consumer confidence has
improved, and albeit only one month into the second
half of 2024, the latest survey results bode well for a
reasonable GDP growth print in Q3.”
“Still, there continues to be sluggish progress on
inflation. The positive takeaway is that price pressures,
both regarding input costs and output prices, are at their
lowest since early 2021. The concern, however, will be
that the respective PMIs are still well above their pre-
pandemic trends, and these are the benchmarks for the
Bank of England to hit before claiming the fight against
inflation is over.”
This article was written by Giuseppe Dellamotta at www.forexlive.com.
