UK: Preliminary Manufacturing PMI Falls to 64.2 in July

UK Manufacturing PMI came in below estimates at 60.4 in July.
The UK Services PMI fell to 57.8 in July, below expectations.

UK IHS Markit/CIPS Manufacturing Purchasing Managers’ Index fell to 60.4 in July vs. 62.5 expected and the final June figure of 63.9.

The UK Services Business Activity Index for July fell to 57.8 vs. June’s final 62.4 and expected reading of 62.0. The index reached its lowest level in four months.

GBP/USD remains at daily lows below 1.3750 on the downbeat UK PMI. The spot is currently trading at 1.3729, down 0.23% so far on the day.

IHS Market Comments:
“July saw a recent spurt of UK economic growth due to the growing wave of COVID-19 infections, which slashed customer demand, disrupted supply chains and caused widespread staff shortages, and also cast a bleak shadow over the outlook.”

“While business activity continued to grow, buoyed by the easing of lockdown restrictions to the lowest level since the pandemic began, the rate of expansion slowed sharply to the lowest level since March.”