Services, Construction & Manufacturing Slowdown...

The latest Markit/CIPS UK Purchasing Managers (PMI) Index for June have shown a slowdown in growth in Services, Manufacturing and Construction sectors. (Source: Markit/CIPS PMI Index, CIPS News - July 2017)

Growth in UK manufacturing slowed to a three-month low against the backdrop of the general election and the start of Brexit talks, according to the latest PMI.

Slower rise in service sector activity
  • New business growth eases to nine-month low
  • Job creation picks up to 14-month high
  • Business optimism drops to second-lowest since December 2011
UK service providers indicated another slowdown in business activity growth during June, which largely reflected the weakest upturn in new work since September 2016. Survey respondents commented on subdued business and consumer confidence, alongside some instances of delayed decision making around the election.

At 53.4, the headline seasonally adjusted IHS Markit/CIPS Services PMI® Business Activity Index posted above the 50.0 no-change mark for the eleventh successive month in June. However, the index was down from 53.8 in May and signalled the slowest expansion of service sector output since February. The average reading in the second quarter as a whole (54.3) was in line with that recorded during the first three months of 2017.

UK construction sector recovery loses momentum in June
  • Business activity growth slows from May’s 17- month high
  • Weaker rises in new orders and employment
  • Business optimism eases to its lowest so far in 2017
June data revealed weaker growth momentum across the UK construction sector, with business activity, new work and employment all expanding at slower rates than in May. Survey respondents commented on signs of renewed risk aversion among clients, reflecting concerns about the economic outlook and heightened political uncertainty. The latest survey also indicated that construction companies were the least optimistic about their near-term growth prospects since December 2016.

At 54.8 in June, down from 56.0 in May, the seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI® ) registered above the 50.0 no-change mark for the tenth month running. Although signalling a solid upturn in overall business activity, the rate of expansion eased from May’s 17-month peak.

UK manufacturing growth slows at end of second quarters
  • UK Manufacturing PMI at three-month low of 54.3 in June
  • Growth rates of output and new orders slow
  • Price inflationary pressures ease
The end of the second quarter saw manufacturers report further expansions of both production and new order volumes. However, rates of increase decelerated, as growth of new business slowed in both the domestic and export markets. Price pressures continued to ease, with rates of inflation in input costs and output charges down further from highs reached at the start of the year.

At 54.3 in June, down from 56.3 in May, the seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index (PMI) posted its lowest reading in three months. However, the average PMI level over the second quarter as a whole (55.9) was the best registered for three years. ... see the full article on CIPS news:


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