The latest data on UK Services and Manufacturing Purchasing Managers’ Index (PMI) for July has been released, and here’s what you need to know:
- UK Services PMI rises to 52.4 in July, missing estimates
- Manufacturing PMI in the UK climbs to 51.8 in July
- GBP/USD keeps losses below 1.2900 after mixed UK business PMIs
According to the S&P Global/CIPS UK Manufacturing PMI, the index improved to 51.8 in July from 50.9 in June, beating market expectations of 51.1. On the other hand, the Preliminary UK Services Business Activity Index rose to 52.4 in July, slightly missing the estimated 52.5 print.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented on the data, noting that the flash PMI survey for July showed positive signs for the second half of the year, with output, order books, and employment all growing at faster rates. Business confidence is rebounding, and price pressures are moderating.
Overall, the data suggests a positive outlook for the UK economy, with companies gaining optimism about the future and reporting increased demand and hiring.
FX implications for GBP/USD
The GBP/USD pair remains relatively unchanged near 1.2885 after the release of the mixed UK PMI data. The pair is currently trading 0.14% lower on the day.
The table below shows the percentage change of the British Pound (GBP) against major currencies today. The British Pound was the weakest against the Japanese Yen.
Based on the data and analysis, investors should keep an eye on the GBP/USD pair for potential trading opportunities. The positive PMI data suggests a growing economy, which could impact the value of the British Pound against other major currencies.