–UK July CIPS Services PMI 53.1 Vs June 54.4 – Reuters
–UK July CIPS Services Much Weaker Than Median 54.5 Forecast
–CIPS/Markit: Public Sector Spending Cuts Hitting New Business
LONDON (MNI) – The July UK services Purchasing Managers Index fell
to a 13-month low and came in well below analysts’ expectations, with
the set of July PMIs suggesting the rate of growth in the UK economy
slowed at the start of the third quarter.
The Markit/CIPS July services PMI came in at 53.1, down from June’s
54.4 , with new business growth slowing. Markit/CIPS said the
prospect of public sector spending cuts were undermining new business.
“The service sector provided a major boost to GDP in the second
quarter, but the rate of expansion has slowed sharply in recent months,
suggesting a far weaker contribution to economic growth in the second
half of the year,” Paul Smith, senior economist at Markit said.
Service sector confidence held steady, but was still well below its
long run average.
The July services PMI was the third PMI survey released this week,
all of them showing a distinct weakening trend.
The CIPS manufacturing PMI for July came in at 57.3, its lowest
level for five months and down from July’s revised 57.6. The CIPS
construction PMI stood at 54.1 in July, sharply down from 58.4 in June.
David Noble, head of CIPS, cautioned that it was important not to
read too much into one month’s set of figures and said he was confident
overall that the “strength is there that we need”.
In comments to the BBC television, Noble said that the PMIs
across the board “are still in very positive territory”.
–London newsroom 0044 207 862 7491; email: drobinson@marketnews.com
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