Prior 52.8Manufacturing PMI 48.2 vs 48.0 expectedPrior 47.7Composite PMI 51.0 vs 51.8 expectedPrior 52.0That's a bummer as the recovery in the UK services sector loses momentum in July. Output growth is seen slowing, albeit marginally, as a decline in new work is also noted on the month. The more pressing point for the BOE is perhaps that the overall rate of input price inflation is seen accelerating from June's six-month low. Price troubles continuing to persist? However, the weaker jobs situation from the report will keep the BOE on track to cut rates in August at least. S&P Global notes that:“The flash UK PMI survey for July shows the economystruggling to expand as we move into the second half ofthe year. Output growth weakened to a pace indicative ofthe economy growing at a mere 0.1% quarterly rate, withrisks tilted to the downside in the coming months."The sluggish output growth reported in July reflectedheadwinds of deteriorating order books, subduedbusiness confidence and rising costs, all of which werewidely linked to the ongoing impact of the policy changesannounced in last autumn’s Budget and the broaderdestabilising effect of geopolitical uncertainty."Particularly worrying is the sustained impact of theBudget measures on employment. Higher staffingcosts have exacerbated firms’ existing concerns overpayroll numbers in the current environment of weakdemand, resulting in another month of sharply reducedheadcounts in July."The weak growth trajectory and sustained culling ofjobs will add to pressure on the Bank of England tocut rates again at its next policy meeting in August. Itseems likely that the disappointing growth and labourmarket trends will increasingly dominate the inflationforecasting narrative, encouraging policymakers to ‘lookthrough’ the recent rise in price pressures and insteadfocus on helping to revive growth.” This article was written by Justin Low at investinglive.com.