The Pound Sterling (GBP) declines against its major peers on Thursday as the preliminary United Kingdom (UK) S&P Purchasing Managers' Index (PMI) report for July has shown that the overall business activity grew at a slower-than-projected pace. The Composite PMI come in at 51.0, lower than estimates of 51.9 and 52.0 in June, suggesting that the overall business activity continued to expand, but at a moderate pace.

UK Composite PMI growth slowed down as the service sector activity surprisingly rose at a moderate pace. The Services PMI dropped to 51.2, while it was expected to come in higher at 53.0 from the prior reading of 52.8. Meanwhile, the Manufacturing PMI continued to decline amid global trade uncertainty and policy changed announced by Chancellor of the Exchequer Rachel Reevs in the last Autumn Budget. The Manufacturing PMI contracted but a slower-than-projected pace to 48.2, against estimates of 48.0 and the prior reading of 47.7.

In the last Autumn Budget, Chancellor Reeves announced an increase in employers' contribution to social security schemes, which forced private employers to slowdown their hiring to offset the increased cost. The PMI report also showed that staffing numbers decreased at the fastest pace since February.

Source: Fxstreet