Slower Growth in UK's Private Sector

In July, the United Kingdom's private sector experienced a continued growth, though at a decelerated pace. The Purchasing Managers' Index (PMI) Composite Output Index slightly decreased from 52 to 51.5. This slowdown was attributed to a decline in new work and employment, as detailed in S&P Global's final report released on Tuesday.

Services Sector Follows Suit

The services sector mirrored this trend, with the Services PMI Business Activity Index dropping from 52.8 in June to 51.8 in July. Factors such as diminished client confidence and sales hurdles, stemming from global economic uncertainty, were identified as key contributors to this downturn.

Expert Insights

"Risk aversion and low confidence among clients were the main reasons provided for sluggish sales pipelines, alongside an unfavourable global economic backdrop," commented Tim Moore, Economics Director at S&P Global Market Intelligence. Despite facing challenges from strong cost pressures and lackluster domestic economic conditions, service providers maintain a generally optimistic outlook for the business year ahead.