The UK economy returned to positive momentum in July 2026 according to S&P Global PMI data, supported by rising consumer spending and lower input cost pressures.

The composite output index rose to 52.8, indicating sustained expansion across private services and high-value manufacturing desks. Lower global energy pricing has also given retailers room to moderate shelf pricing.

"Stabilizing freight costs and a reduction in core supply inflation have given domestic consumers their first real purchasing power gains in quarters," explains economist Elena Rostova.

Bank of England policymakers are expected to review these metrics in their upcoming interest rate cycle, weighing economic recovery indicators against sticky service wage ratios.