United Kingdom: Composite PMI unchanged in June
The S&P Global/CIPS Flash Composite Purchasing Managers’ Index (PMI) was unchanged at May’s 53.1 in June. As such, the index remained above the 50.0 no-change threshold, signaling a continued improvement in business conditions from the previous month. In the private-sector as a whole, output growth was unchanged at May’s 15-month low, while new order growth slowed for the fourth straight month and business sentiment fell due to inflation concerns.
The Manufacturing PMI clocked in at 53.4 in June, down from May’s 54.6 and held back by weak demand and ongoing supply issues. Meanwhile, the services PMI activity index remained stable at May’s 53.4 in June. The services sector continued to outperform manufacturing due to the recovery in contact-intensive services as the pandemic’s impact dissipates. However, high inflation held back services activity.
Chris Williamson, chief business economist at S&P Global, commented:
“The economy is starting to look like it is running on empty. Current business growth is being supported by orders placed in prior months as companies report a near-stalling of demand. Manufacturers in particular are struggling with falling orders, especially for exports, and the service sector is already seeing signs of the recent growth spurt from pent-up pandemic demand move into reverse amid the rising cost of living.”