In July, UK services growth slowed to a 6-month low.

A business survey released on Thursday, in advance of the Bank of England's decision on interest rates, indicated that growth among British service businesses dropped last month to its worst level since January.

The final PMI number was unchanged from a preliminary estimate in July, dropping from 53.7 in June to 51.5 in July. A reading over 50 indicates development.

Even though the economy has so far avoided the recession that many experts had expected late last year, the survey's findings are consistent with other economic indicators that show a stagnant economy restrained by high inflation and rising borrowing rates.

The BoE keeps a careful eye on the PMI. Businesses reported that expenses and selling prices decreased in July, but S&P Global highlighted that greater compensation payments remained a source of upward pressure, which the officials of the central bank are likely to monitor.

According to economists surveyed by Reuters, the BoE will increase interest rates later on Thursday to 5.25%, a fresh 15-year high, up from the current 5%.

The manufacturing PMI released on Tuesday is combined with the services PMI released on Thursday to create the composite PMI, which dropped to 50.8 in July from 52.8 in June, the lowest figure since January although slightly revised up from a flash reading of 50.7.

(Sources: investing.com, reuters.com)