UK August flash services PMI 53.6 vs 51.8 expected | investingLive

• Prior 51.8
• Manufacturing PMI 47.3 vs 48.3 expected
• Prior 48.0
• Composite PMI 53.0 vs 51.6 expected
• Prior 51.5

Key Findings:

• Strongest rise in UK private sector business activity since August 2024

Comment:

Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence:

“The flash UK PMI survey for August indicated that the
pace of economic growth has continued to accelerate
over the summer after a sluggish spring, the rate of
expansion now at a one-year high. The services sector
has led the expansion, but manufacturing also showed
further signs of stabilising.

“It’s evident from survey measures of order books,
however, that the demand environment remains both
uneven and fragile. Companies report concerns over
the impact of recent government policy changes, as
well as unease emanating from broader geopolitical
uncertainty. Goods exports are still falling especially
sharply.

“Payroll numbers also continue to be cut at an
aggressive rate by historical standards as firms cite
weak order books and concerns over rising staff costs
due to the policies announced in the autumn Budget,
which also contributed to persistent inflation pressures.

“While the rise in business activity signalled by the PMI
alongside the uplift in inflation to 3.8% in July lower
the chances of further rate cuts this year, more data
are required to assess both the sustainability of robust
economic growth as well as the stickiness of the upturn
in price pressures. Among a divided Bank of England rate
setting committee, the perceived need for any future
rate cuts will be very much data dependent.”