UK Businesses Report Stronger Growth Amid Lower Oil Prices

UK businesses reported stronger activity in July, signaling a faster pace of economic growth at the start of the third quarter. According to the flash Purchasing Managers' Index (PMI), this uptick is partly due to lower oil prices during the first half of the month.

The Bank of England may take note of these developments as they consider interest rate hikes, which could be influenced by the prospect of lower inflation.

The service sector saw a resurgence in July, with activity rising for the first time in three months. Good weather supported increased spending on hospitality activities, such as leisure and recreation, despite overall services growth remaining lackluster amid cost-of-living pressures.