UK Preliminary Services PMI enters contraction with 48.7 in August

The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell further in August to 42.5 from 45.0 predicted and 45.3 in July.

Meanwhile, the Preliminary UK Services Business Activity Index fell to a seven-month low of 48.7 in August, compared to a final print of 51.5 in July and a market estimate of 50.8.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented on the flash PMI data, saying, “A renewed contraction of the economy already looks inevitable, as an increasingly severe manufacturing downturn is accompanied by a further faltering of the service sector’s spring revival. The survey is indicative of GDP declining by 0.2% over the third quarter so far