British Business Activity Rebounds as Growth Hits July Peak

The S&P Global UK Composite Purchasing Managers' Index climbed to 52.1, comfortably outpacing the 49.3 recorded in June and exceeding consensus expectations from Reuters analysts. This expansion was driven by a resurgent services sector, which reached 51.8, while manufacturing output managed a modest recovery that defied earlier, more pessimistic industry forecasts.

Lower costs for fuel and raw materials have helped dampen inflationary pressures, though the broader outlook remains fragile due to persistent geopolitical friction. To sustain this momentum, Burnham has moved to reduce business rates for hospitality venues and implement a cap on bus fares. These efforts aim to bolster consumer confidence, which has now climbed to its highest level since January, providing a critical buffer against lingering domestic economic uncertainty.