July’s S&P Global Services PMI rises above 50, signaling growth after June’s contraction and boosting GBP sentiment.
The UK S&P Global Services PMI climbed to 51.8 in July, recovering from June’s contraction as the index crossed the 50 threshold separating expansion from decline. The preliminary data marks the first growth in the sector since May, driven by improved business activity among service providers.
June’s PMI stood at 47.2, following a downward trend from 52.9 in May. Analysts had anticipated a modest rebound, though the July print exceeded expectations. A reading above 50 typically correlates with broader economic expansion, supporting GDP and employment trends.
The rebound is viewed as bullish for the Pound Sterling, as stronger service sector activity often aligns with increased inflationary pressures and potential monetary policy shifts.