United Kingdom Composite PMIJuly 2022 Data - 2013-2021 Historical - August Forecast

The S&P Global/CIPS UK Composite PMI was revised lower to 52.1 in July of 2022 from a preliminary reading of 52.8 and down from 53.7 in June. The latest reading signaled the slowest rate of expansion since February 2021. New orders increased only marginally in July, reflecting subdued demand in both domestic and overseas markets. Latest data signaled a renewed decline in export sales, largely reflecting a reduction in new work from abroad across the manufacturing sector. UK private sector firms signaled another steep rise in their average cost burdens during July, but the pace of inflation moderated to a ten-month low. Softer input price pressures and subdued customer demand contributed to the least marked rise in average prices charged since February.

The S&P Global/CIPS UK Composite PMI fell to 52.8 in July of 2022 from 53.7 in June, the lowest since February 2021 and compared to market expectations of 52.5, flash figures showed. Sector data illustrated that service providers continued to outperform in July (index at 53.3), although the latest output expansion was the weakest for 17 months. Meanwhile, manufacturing production (49.7) decreased for the first time since May 2020. The slowdown in output growth mostly reflected softer demand, alongside ongoing capacity constraints arising from shortages of materials and staff. On a more positive note, latest data indicated that input cost inflation eased considerably and was the lowest for ten months. Survey respondents often commented on lower commodity prices and a stabilisation in fuel costs, but there were still widespread reports citing intense salary pressures. Some firms noted that exchange rate depreciation against the US dollar had added to their purchasing costs during July.

The S&P Global/CIPS Composite PMI was revised higher to 53.7 in June of 2022 from a preliminary reading of 53.1, edging higher from the 53.1 in May. The figure reflected a higher reading for the services sector (54.3 vs 53.4 in May), offsetting a decrease for the manufacturing sector (52.8 vs 54.6). A marked increase in business activity for service providers caused the discrepancy between both sectors, as output for manufacturers was at a near standstill in June. Still, both sectors saw a sharp decrease in new business, as new orders in the manufacturing sector contracted for the first time in 17-months while new work grew at the slowest pace in 16 months in the service sector. Meanwhile aggregated price growth remained substantial during June, but eased slightly from record levels in the previous month. Looking forward, business confidence business confidence slipped to its lowest since May 2020 for both sectors.