UK economic growth nearly stalls in July, PMIs show

by | Jul 24, 2023

(Sharecast News) – Activity levels in the UK’s manufacturing and services sectors slowed sharply in July, closely followed survey results showed.
The latest survey readings led S&P Global chief business economist, Chris Williamson, to conclude that: “The UK economy has come close to stalling in July which, combined with gloomy forward-looking indicators, reignites recession worries.”

The S&P Global/CIPS ‘flash’ Composite Output Index plumbed a six-month low of 50.7 and was down from a June reading of 52.8.

In parallel, the Purchasing Managers’ Index for manufacturing fell from 46.5 to 45.0 (consensus: 46.0).

The PMI for services retreated from 53.7 to 51.5 (consensus: 53.0).

“An upside to the deteriorating growth and demand picture is a further cooling of inflationary pressures,” Williamson added.

“Manufacturing prices are falling at an increased rate and service sector inflation is continuing to moderate. Although ongoing upward wage pressures mean service sector price growth remains elevated, the survey data signal further, potentially marked, falls in consumer price inflation in the months ahead.”

Related articles

Aldi and Lidl win UK Christmas battle

Aldi and Lidl win UK Christmas battle

(Sharecast News) - German discounters Aldi and Lidl performed best in December, according to data from retail expert Kantar, which said a record £13.7bn was spent at British supermarkets over the four weeks ended 24 December. Kantar recorded Lidl's sales growth at...

UK house prices fall 1.8% YoY in December – Nationwide

UK house prices fall 1.8% YoY in December – Nationwide

(Sharecast News) - UK house prices fell by a higher-than-expected 1.8% year on year in December, mortgage lender Nationwide said on Friday, as higher borrowing costs and deposit requirements deterred buyers. Expectations were for a 1.4% fall. Prices remained flat on a...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!