UK manufacturing and services data raises recession concerns

In the UK, the manufacturing purchasing managers’ index (PMI) fell to 45 in July, the lowest level in 38 months.

S&P Global/CIPS announced the main PMI data for July in the UK.

Consequently, the country’s manufacturing PMI fell to 45 in July, the lowest level in 38 months.

The expectation was that the PMI data for the manufacturing industry in the country would be 46.1 in July.

In the previous month, the manufacturing industry PMI was recorded at 46.5.

In England, the service sector PMI fell to 51.5 in July, hitting a 6-month low.

The expectation for the PMI of the services sector, which was 53.7 the previous month, was going to be 53 in July.

In PMI data, known as forward data, industry growth above 50 is interpreted as industry contraction below this level.

The service sector accounts for around 80 per cent of the British economy.

‘THE BRITISH ECONOMY IS CLOSE TO STALLING’

Commenting on the data, Chris Williamson, S&P’s Chief Economist for Global Markets, said: “The UK economy is close to a pause as gloomy indicators ahead triggered recession concerns again.”

Williamson said that in addition to the contraction of the manufacturing sector in England in July this year, growth in the service sector, which accounts for an important part of the economy, has weakened. (AA)