• UK Final Services PMI sees a downward revision to 52.6 in July.
  • GBP/USD retains its restoration mode intact round 1.2200 on the dismal knowledge.
  • Eyes on US-Sino tensions over Taiwan and US ISM Services PMI knowledge.

The UK companies sector exercise expanded lower than expected in July, the ultimate report from IHS Markit confirmed this Wednesday. 

The seasonally adjusted S&P Global/CIPS UK Services Purchasing Managers’ Index (PMI) was revised decrease to 52.6 in July versus 53.3 expected and 53.3 – final month’s flash studying.

The S&P Global/CIPS UK Composite PMI arrived at 52.1 in July vs. 52.8 expected and 52.8 earlier studying.

Key factors

Slowest output progress in 17 months of enlargement.

Employment rises markedly once more, regardless of subdued order books.

Input value inflation softens to its lowest since December 2021.

Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey

“UK service providers reported their worst month for business activity expansion since the national lockdown in February 2021. Reduced levels of discretionary consumer spending and efforts by businesses to contain expenses due to escalating inflation have combined to squeeze demand across the service economy.”

“The near-term outlook also looks subdued, as new order growth held close to June’s 16-month low and business optimism was the second-weakest since May 2020.”

FX implications

GBP/USD retains its vary close to 1.2200 on the downbeat UK knowledge. The spot is up 0.18% on the day.


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