Slowdown in output growth stems from softer demand, ongoing capacity constraints, says S&P Global report
UK private sector business activity rose at the weakest pace in the last 17 months in July, with the S&P Global Flash Composite Purchasing Manufacturing Index (PMI) hitting 52.8, according to a report released on Friday.
The figure was down from 53.7 in June and the lowest reading since February 2021 due to softer demand and ongoing capacity constraints arising from shortages of materials and staff,said US-based financial services company S&P Global.
Input cost inflation has eased considerably since reaching its lowest level in 10 months, it stressed.
The services PMI dropped to 53.3 in July, down from 54.3 a month ago.
Flash UK Manufacturing PMI hit a 25-month low, reaching 52.2 in July compared to the June reading of 52.8.
Survey respondents often commented on lower commodity prices and stabilization in fuel costs, but there were still widespread reports citing intense salary pressures, it said.