Preliminary PMI for Services: 51.2 (52.9 expected; 52.8 previously)
Preliminary PMI for Manufacturing: 48.2 (48 expected; 47.7 previously)
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe British Pound lost ground today after disappointing UK PMI data for July signaled a slowdown in the nation's economic recovery. While Manufacturing PMI saw a slight uptick to 48.2, it remains in contraction. More concerning was the Composite PMI, which fell to 51.0, missing expectations and indicating a loss of momentum in the services sector.
This slowdown points to easing output growth and declining new work. For the Bank of England, the accelerating input price inflation is a worry, suggesting persistent price pressures. However, the report's highlight of a weaker jobs situation, with "sharply reduced headcounts," could push the BOE to cut rates in August. Moreover economists expect that the Bank of England has more room to cut this cycle than the Fed which may be negative for the GBPUSD in the mid-term.
S&P Global emphasized that the UK economy is "struggling to expand," with output growth hinting at a mere 0.1% quarterly rate. This sluggish growth and job cuts will likely increase pressure on the Bank of England to prioritize stimulating growth over immediate inflation concerns.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
