UK business activity rebounds after pre-election slowdown, PMI data reveals

- British business activity rebounded this month with the fastest manufacturing growth in two years and strong new orders, following a lull before the July 4 election, according to a survey.

- Prime Minister Keir Starmer's government aims for faster growth to support increased public spending, while inflation pressures in the UK have eased to their lowest in over three years.

- Despite exceeding expectations this year, the UK economy has underperformed post-COVID, with only Germany faring worse among G7 nations due to the impact of surging European natural gas prices after Russia's invasion of Ukraine in 2022.

British business activity saw a boost this month, marked by the fastest manufacturing growth in two years and a surge in new orders, following a pre-election slowdown. Prime Minister Keir Starmer's administration targets accelerated growth to enable higher public spending, while inflation pressures have eased significantly. The UK economy, despite outperforming forecasts this year, has lagged behind post-COVID recovery, with Germany being the only G7 country faring worse, largely due to the aftermath of Russia's invasion of Ukraine in 2022.