IHS Markit UK composite PMI dropped to 57.7 in July
UK private sector growth is at its lowest point in four months, a survey by IHS Markit revealed, while staff shortages dragged on the economic recovery this month.
A phenomenon being referred to as the “pingdemic” is causing a number of healthy workers to isolate at home as they are alerted by the NHS test and trace app. Firms have reported back to IHS Markit that the “pingdemic” is causing material and staff shortages, resulting in the slowest recovery since March.
The stalling momentum is causing levels of optimism to fall to the lowest level in over nine months.
IHS Markit UK composite PMI dropped to 57.7 in July, down from 62.2 the previous month, representing a significant fall. Readings above 50 indicate an expansion in business activity.
Chris Williamson, Chief Business Economist at IHS Markit, commented on the figures released on Friday by IHS Markit: “July saw the UK economy’s recent growth spurt stifled by the rising wave of virus infections, which subdued customer demand, disrupted supply chains and caused widespread staff shortages, and also cast a darkening shadow over the outlook.”
“Although business activity continued to grow, aided by the easing of lockdown restrictions to the lowest since the pandemic began, the rate of expansion slowed sharply to the weakest since March.”
“Transport, hospitality and other consumer-facing services companies were the hardest hit, though manufacturing also saw growth weaken markedly during the month,” Williamson said.