FXStreet (Mumbai) – The seasonally adjusted Markit/CIPS UK Services PMI in July printed at 57.4 compared to June’s 58.5. The number stayed above 50.00 indicating expansion for the thirty-first successive month.
As per the official report, stronger inflows of new business, coupled with a slight easing in growth of activity, led to a rise in outstanding business at service sector companies. The rate of job creation was the slowest since March 2014, but remained historically strong.
The rate of inflation eased to a three-month low, and remained weaker than the long-run survey average. In contrast, prices charged for services increased at the strongest rate since February.
As per David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, “Though dislodged from last month, the sector’s growth continued to operate on solid foundations and in an optimistic environment. Respondents reported a few surprises in the form of unexpected new business wins, which contributed to increased backlogs. Overall, activity has continued to rise for 31 months and though the minor easing in growth may raise questions around the continued strength of recovery, recent revised GDP figures for the UK economy confirm the sector’s solidity along with half of the survey’s respondents who were optimistic for the coming months.”
(Market News Provided by FXstreet)