June’s composite PMI suggests the economic recovery lost a bit of momentum towards the end of the second quarter. And after two stronger-than-expected inflation prints for April and May, the renewed pick-up in the services output prices balance will be a bit disappointing for the Bank of England. This may not prevent an interest rate cut from 5.25% to 5.00% at the August policy meeting, but the risk is that rate cuts thereafter may be a bit more gradual than we currently expect.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services