UK: Preliminary services PMI stabilizes at 53.4 points in June, vs. 53.0 expected

• UK Manufacturing PMI falls to 53.4 in June, missing estimates.
• UK services PMI stands at 53.4 in June, a positive surprise
• GBP/USD briefly bounces back to 1.2200 after preliminary UK PMIs.

The Purchasing Managers Index UK Manufacturing PMI, seasonally adjusted, has fallen to 53.4 in Junecompared to 53.7 expected and 54.6 in the final reading for May.

For his part, the Preliminary UK service sector business activity index for June stood at 53.4compared to the final result of May of 53.4, and the expected of 53.0.

Comments from Chris Williamson, chief corporate economist at S&P Global

“The economy is starting to look like it’s running on empty. Current business growth is being supported by orders placed in previous months, as companies report near-stagnation in demand. Manufacturing, in particular , are struggling with falling orders, especially from exports, and the services sector is already seeing a reversal of the recent run of demand growth suppressed during the pandemic amid rising costs of living.”

“Business confidence has slumped to a level that in the past used to signal an impending recession. Weakness in the broad flow of economic data so far in the second quarter points to a drop in GDP which, according to PMI figures, , will gain momentum in the third quarter.”