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The recovery of the British economy slowed down again in August

The recovery of the British economy slowed down again in August. Companies are struggling with a lack of materials and staff.

The recovery of the British economy slowed down again in August
Yazar: Tom Roberts

Yayınlanma: 24 Ağustos 2021 08:49

Güncellenme: 16 Kasım 2024 08:26

The recovery of the British economy slowed down again in August

The recovery of the British economy slowed down again in August as companies struggled with an unprecedented shortage of materials and staff. The results of a survey by IHS Markit showed this on Monday. According to Markit's quick estimate, the combined Purchasing Managers Index (PMI) for the service and manufacturing sectors in Britain fell in August, for the third month in a row, to 55.3 points from 59.2 points in July. This is its smallest value since February and a more significant decline than the estimates of economists, who expected the August PMI at 58.4 points. The index remained slightly above the pre-pandemic new coronavirus average, but "there are clear signs that economic recovery after a strong second quarter is losing momentum in the third quarter," said Chris Williamson, chief economist at IHS Markit. He added that although measures to curb the spread of COVID-19 in Britain had already eased, the growing number of delta cases was discouraging many from spending, especially on consumers. In addition, companies were affected by the deteriorating supply situation and staff shortages. The decline in the combined PMI was mainly due to a slowdown in growth in the dominant services sector. The relevant index fell to 55.3 points in August from 59.2 points in July and also lagged behind economists' estimates at 58.4 points. The manufacturing sector also slowed, but only slightly, to 60.1 from 60.4 points, while economists predicted it would fall to 59 points. The survey was conducted between 12 August and 19 August.
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