At 51.5, the final PMI composite index for July was 0.5 points above the flash estimate and consensus but 0.5 points below June's final. The composite index for July posted above the 50-growth threshold, signalling an expansion of business activity.

The service sector index posted a final 51.8, up 0.6 points from the flash estimate and consensus but 1.0 points less than June's final. This signals expansion of service activity; however, it is still below the long-run average of 54.3. New business declined largely due to loss of client confidence and delayed decision-making. Employment continued its downward trend with staffing numbers falling the sharpest since February. Business confidence, however, remained above April's two-and-a-half-year low and was second second-highest since October 2024. Input price inflation eased to its lowest so far in 2025, but remains above its long-run average. That and higher transportation costs led to an increase in prices charged.

Today's data puts the UK RPI at 4 and the RPI-P at minus 7, meaning that the economy is within market forecasts.

No change from the flash at 51.0 is the call for the July composite final, down from 52.0 in the June final. No change is expected from the flash at 51.2 for services versus 52.8 in the June final.

The Services Purchasing Managers' Index (PMI) provides an estimate of service sector business activity for the preceding month by using information obtained from a representative sector survey incorporating transport and communication, financial intermediation, business services, personal services, computing and IT and hotels and restaurants. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The data are compiled by the Chartered Institute of Purchasing and Supply (CIPS) and S&P Global.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the ISM non-manufacturing index in the U.S. and the S&P Global PMIs elsewhere, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.

The S&P Global PMI services data give a detailed look at the services sector, how busy it is and where things are headed. The indexes are widely used by businesses, governments and economic analysts in financial institutions to help better understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions published each month and are therefore available well ahead of comparable data produced by government bodies.