UK PMI Reaches Highest Level Since February
UK business activity returned to growth in July after contracting for the past three months. The S&P Global UK Composite PMI, released on Friday (July 24th), rose to 52.1 from 49.3 in June, its highest level since February.
This figure exceeded all forecasts in a Reuters survey, which had previously projected a slight increase to 49.7. An index above 50 indicates business activity is in an expansionary phase.
The services sector recorded improvement, with the PMI rising to 51.8 from 48.8, its strongest level since April. Meanwhile, the manufacturing PMI rose to 52.8 from 52.5 in the previous month.
The strengthening activity was supported by falling fuel and raw material prices as the conflict in the Gulf region eased. This situation has pushed combined input cost pressures in the services and manufacturing sectors to their lowest level since February.
Business optimism regarding the outlook for the year ahead also rose to its highest level since February. Several companies have benefited from spending on artificial intelligence investments, although concerns about the domestic economy and business uncertainty remain.
However, re-escalating geopolitical tensions risk pushing up energy prices and cost pressures again. The Bank of England is expected to keep interest rates at 3.75% next week while assessing the impact of the conflict on inflation and the UK economy. (arl)
Source: Newsmaker.id
