UK services PMI rebounds beyond expectations in July

The services sector activity in the UK economy reversed course and staged a solid rebound from four-month troughs, bettering expectations in the month of July, a fresh report from Markit Economics showed on Thursday.

The services PMI bounced to 53.8 in July versus a 53.4 reading booked in July. Markets predicted an expansion to 53.6 last month.

Key Points:

Activity growth picks up slightly from June’s four-month low

Employment numbers rise at fastest pace since January 2016

Optimism regarding the business outlook remains subdued

Chris Williamson, Chief Economist at Markit, noted: “The service sector PMI indicates that businesses remain in expansion-mode despite heightened uncertainty about the outlook, but also highlights how the risks to future growth remain firmly biased to the downside. “Taken together, the three PMI surveys are broadly consistent with economic growth of just over 0.3%, putting the country on course for another steady but sluggish expansion in the third quarter.”