UK services growth slows slightly

The RBC Canadian manufacturing index was 50.8 last month, indicating purchasing managers in the sector generally saw expanded production and new business volumes. The index was 51.3% in June.

Downward pressure came from lower output and new orders, which companies attributed to a weaker economic environment and subdued demand. Any score above 50 indicates industry growth.

Factory activity China last month recorded its lowest reading in two years, with a sharp fall in new orders.

Manufacturing employment rose for the twenty-fourth straight month in July. Subsequently, service sector charges rose at the quickest rate since September previous year.

With conditions and sentiment improving in the currency bloc after the Greek deal, Markit’s July final Eurozone Composite Purchasing Managers’ Index (PMI) beat an earlier estimate of 53.7, settling at 53.9. The reading was the lowest since July 2013, when it fell to 47.7. “The economy can still possibly see 7 percent growth”, he added, noting that aside from high-frequency data such as the monthly PMIs, the country is still seeing solid job creation and wage growth. Around 96 per cent of respondents reported no change in staff strength from the levels in the prior month.

Markit senior economist Tim Moore said: “July’s growth slowdown is the first for three months and perhaps a sign that the post-election impact on construction confidence has started to diminish.

Faster growth in services accompanied a similar upturn in manufacturing”, said Chris Williamson, Markit chief economist, in a statement.

But RBI governor Raghuram Rajan has said any further reduction would have to wait until the inflationary effect of annual monsoon rains is known in a couple of months time.

The report followed a downbeat official survey on Saturday, which showed growth at manufacturing firms unexpectedly stalled, reinforcing views that the struggling economy needs more stimulus, even as it faces fresh risks from a stock market slump.

There was only a marginal increase in the number of firms facing success with new foreign clients and new product launches leading to greater worldwide demand.