New order volumes in the UK services industry fell in July at their steepest rate since November 2022, according to a Tuesday survey that may intensify the Bank of England’s worries over economic growth.
The S&P Global Purchasing Managers’ Index (PMI) for UK services dropped to 51.8 in July from 52.8 in June, a decline less severe than an earlier estimate of 51.2.
While the index remains above the 50 threshold that indicates expansion, the sector also saw the quickest pace of job cuts in six months.
This report comes ahead of the Bank of England’s interest rate announcement on Thursday, where a rate cut from 4.25% to 4% is widely anticipated, marking the fifth reduction in the current tightening cycle.
However, some members of the policymaking committee may favor holding rates steady due to inflation surging well beyond the 2% target.
The softer services data adds complexity to the bank’s balancing act between curbing inflation and supporting a slowing economy.
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