UK Private Sector Activity Shows Signs of Slowing Growth

According to a preliminary report by S&P Global released on Thursday, business activity in the United Kingdom saw an improvement in July, albeit at a slower pace compared to the previous month. The composite Purchasing Managers' Index (PMI) experienced a slight decrease, dropping by 1 point to 51, yet it remained above the critical 50.0 threshold for the second consecutive month.

Service Sector Expansion Moderates

The services PMI witnessed a modest expansion but decreased by 1.6 points to 51.2 in July. Meanwhile, the manufacturing sector showed some resilience, with the manufacturing PMI climbing by 1.5 points from June to reach 48.2, marking a six-month high.

Pressure Mounts on Bank of England

"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," remarked Chris Williamson, S&P Global Market Intelligence Chief Business Economist. He further added, "The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year."