UK PMI dips for first time since January

Fell to 49.5

The UK services sector has contracted for the first time since January, according to the latest data from the S&P Global and the Chartered Institute of Procurement and Supply final purchasing managers’ index (PMI).

PMI slipped to 49.5 in August, down from 51.5 in July, with S&P Global attributing increasingly higher interest rates and reduced consumer and corporate demand to the drop. Although this was the first decline in seven months, it was not as exaggerated as analysts had forecast, as initial estimates had it matching January's 48.7 result. Bank of America forecasts no rate cuts for UK until 2025 due to 'entrenched inflation' "Service providers saw customer spending reverse course during August as higher borrowing costs, subdued business confidence, and stretched household finances all ...