Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
UK private sector growth eased to its slowest pace since November this month, despite the manufacturing economy enjoying its best showing in almost two years, numbers on Friday showed.
The latest S&P Global flash UK composite purchasing managers’ index fell to 51.7 points in June, from May’s final tally of 53.0 points. The reading fell towards the 50.0 no change mark, suggesting growth in the UK’s private sector economy slowed.
‘UK private sector business activity expanded in June at its slowest rate since last November, as a slowing of service sector growth offset a stronger performance in manufacturing. Output at goods producers rose to the greatest degree since April 2022, driven by improved order book intakes and strong business confidence. At the same time, services activity grew at its softest pace for seven months, although survey evidence indicated that the slowdown was partly driven by a pause in client spending decisions during the election period,’ S&P Global said.
The manufacturing PMI expanded to a 23-month-high of 51.4 points in June’s flash estimate, edging up from 51.2 in May.
The services PMI declined to a seven-month-low of 51.2 points, however, from 52.9.
‘Services firms experienced a loss of growth momentum for the second month running in June, with business activity rising only modestly and at the weakest pace for seven months. Although higher customer demand helped to boost activity levels, according to respondents, this was partly offset by reports of spending decisions being put on hold due to the general election,’ S&P Global added.
‘The flash survey data pointed to a weaker level of business confidence regarding future output at UK
companies in June, which qualitative evidence showed was fuelled by political uncertainty ahead of the general election. Sentiment at services firms was especially affected, dropping to its lowest level for seven months. Aside from this, optimism towards future activity was still robust overall, with firms generally expectant of improving economic conditions, customer growth and new products driving increased output over the coming year.’
The survey features a panel of around 650 firms, with the flash estimate compiled using up to 90% of the responses. Final manufacturing data for June is revealed on July 1, with the services and composite readings two days later.
Copyright 2024 Alliance News Ltd. All Rights Reserved.