UK Final Services PMI revised down to 52.6 in July vs. 53.3 expected

• UK Final Services PMI sees a downward revision to 52.6 in July.
• GBP/USD keeps its recovery mode intact around 1.2200 on the dismal data.
• Eyes on US-Sino tensions over Taiwan and US ISM Services PMI data.

The UK services sector activity expanded less than expected in July, the final report from IHS Markit confirmed this Wednesday. 

The seasonally adjusted S&P Global/CIPS UK Services Purchasing Managers’ Index (PMI) was revised lower to 52.6 in July versus 53.3 expected and 53.3 – last month’s flash reading.

The S&P Global/CIPS UK Composite PMI arrived at 52.1 in July vs. 52.8 expected and 52.8 previous reading.

Key points

Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey

“UK service providers reported their worst month for business activity expansion since the national lockdown in February 2021. Reduced levels of discretionary consumer spending and efforts by businesses to contain expenses due to escalating inflation have combined to squeeze demand across the service economy.”

“The near-term outlook also looks subdued, as new order growth held close to June's 16-month low and business optimism was the second-weakest since May 2020.”

FX implications

GBP/USD keeps its range near 1.2200 on the downbeat UK data. The spot is up 0.18% on the day.