July’s preliminary UK services PMI rises above 50, ending a contraction and suggesting economic growth in the sector.
The UK S&P Global Services PMI climbed to 51.8 in July, recovering from June’s contraction and surpassing the 50 threshold that separates growth from decline. The preliminary data marks the first expansion in the sector since May, driven by improved business activity and new orders.
June’s PMI had fallen to 50.2, barely avoiding contraction, while economists had anticipated a modest rebound. The July reading aligns with early signs of stabilization in the UK’s dominant services sector, which accounts for over 70% of economic output.
Markets are monitoring the data for clues on Bank of England policy, as sustained growth could influence future interest rate decisions.