UK Private Sector Growth Moderates On Services Activity
(RTTNews) - UK private sector output continued to grow in July but the pace of expansion moderated as services activity lost momentum, flash survey results from S&P Global revealed on Thursday.
The composite output index slid to 51.0 in July from 52.0 in June. The reading was also above the forecast of 51.9.
The services Purchasing Managers' Index registered 51.2 in July, down from 52.8 in the previous month. The score was forecast to remain unchanged at 52.8.
The factory PMI improved to 48.2 in July from 47.7 a month ago. The score was seen at 48.1.
Employment decreased at the fastest pace since February. Companies reduced headcounts in response to higher payroll costs and subdued customer demand.
Regarding prices, the survey showed that input price inflation accelerated for the first time in three months in July. Consequently, prices charged by private sector businesses increased at a robust pace in July.
Looking ahead, private sector firms on balance continued to expect a rise in business activity over the coming 12 months.
"The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.
"The weak growth trajectory and sustained culling of jobs will add to pressure on the Bank of England to cut rates again at its next policy meeting in August," added Williamson.
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