UK July final services PMI 52.6 vs 53.3 prelim

• Composite PMI 52.1 vs 52.8 prelim

High inflation continues to dampen demand conditions in the UK economy, with the services sector returning its worst performance since February 2021. Output growth was the slowest in the past 17 months as the cost-of-living crisis continues to deepen. Meanwhile, business confidence remains subdued and was the second-lowest since May 2020. S&P Global notes that:

“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 secondweakest since May 2020.

"The most encouraging development during July was a considerable slowdown in input cost inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term since the previous month, likely reflecting lower commodity prices and a gradual easing of global supply shortages. Overall cost burdens rose to the smallest extent seen so far in 2022, despite widespread reports citing pressure on operating expenses from higher fuel bills and staff wages. Any slowdown in inflationary pressures can't come soon enough for service providers, with many firms reporting growing customer resistance to price hikes and a subsequent downturn in demand as higher energy, fuel and staff costs are passed on to customers."