According to Jinshi Data, Monday's PMI data showed that optimism in the UK services sector was high due to Starmer's victory in the general election. The S&P Global UK Services PMI rose to 52.5 in July, with a large influx of new orders and the largest increase in employment in more than a year.
An index measuring new business rose to its highest level since May last year, while an index of future activity hit a five-month high. S&P Global attributed this to the election result and expectations of interest rate cuts, with the Bank of England cutting interest rates for the first time since March 2020 last week.
Joe Hayes, chief economist at S&P Global Market Intelligence, said that although only one month has passed in the second half of 2024, the latest survey results indicate that GDP will grow reasonably in the third quarter. He also pointed out that price pressures, although close to the lowest point since early 2021, are still at historically high levels, which worries the Bank of England.