UK PMIs showed significant declines in July - TDS

Research Team at TDS, notes that the MarkIt’s flash UK PMIs showed significant declines in July as the manufacturing PMI fell 3 points to 49.1, while the services PMI fell more significantly by almost 5 points to 47.4, as we expected.

Key Quotes

“This follows on the construction PMI, which fell in June by over 5 points, despite only 20% of the survey being conducted after the EU Referendum. Companies reported weaker output and new orders, and higher input prices (consistent with the drop in the currency). Manufacturing exports, however, did show a silver lining, as the weaker pound helped boost foreign orders. With services being the significant bulk of the UK economy, this does spell trouble for 16Q3 quarter output.”