(News Bulletin 247) – The British private sector experienced its weakest growth in six months in July, according to the latest PMI survey carried out among purchasing managers by S&P Global and CIPS.
Their ‘flash’ composite index – which measures production in services and industry – thus stood at 50.7 over the month that is ending, against 52.8 in June.
The index returns not far from the bar of 50 points, which separates growth and contraction of activity.
Growth in service sector activity has slowed in particular, with a preliminary PMI reading of 51.5 this month, down from 53.7 last month.
The manufacturing industry has sunk a little further into the contraction zone with a ‘flash’ PMI index of 45, its lowest for more than three years, against 46.5 in June.
“The British economy almost came close to breaking even in July, which – combined with the gloomyness of the most leading indicators – is reviving fears of a recession,” reacted Chris Williamson, chief economist at S&P Global Market Intelligence.
“The rise in interest rates and the high cost of living seem to be affecting households more and more, penalizing the post-pandemic rebound which had benefited spending related to leisure activities,” he concludes.
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