December 4, 2022

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UK July final services PMI 59.6 vs 57.8 prelim

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Latest data released by Markit/CIPS – 4 August 2021

  • Composite PMI 59.2 vs 57.7 prelim
The preliminary report can be found here. That’s a decent bump in the final readings but it still reaffirms the slowest growth in UK business activity since March.

Staff shortages amid self-isolation restrictions contributed to that alongside strongest input cost inflation on record, as price pressures continue to soar. Markit notes that:

“July data illustrates that recovery speed across the UK
economy has slowed in comparison to the second quarter of
2021. More businesses are experiencing growth constraints
from supply shortages of labour and materials, while on the
demand side we’ve already seen the peak phase of pent up
consumer spending.

“The full easing of pandemic restrictions appears to have
helped limit the overall loss of momentum towards the end
of July. At 59.6, the PMI reading for services output was much
stronger than our earlier ‘flash’ figure of 57.8 in July, largely
due to the final index covering an extra five working days since
‘freedom day’.

“Any re-acceleration of growth in August looks unlikely,
however, as new orders increased at a much-reduced pace at
the start of the third quarter. Moreover, business expectations
softened again during July, with UK firms the least optimistic
about the growth outlook since January. Survey respondents
cited worries about recruiting staff to meet business expansion
plans and some suggested that escalating costs would hinder
the recovery.”

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