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Incoming data from the UK – the July services Purchasing Managers’ Index (PMI) has come in above forecast, but still marks a slowdown in the recovery.
The seasonally-adjusted IHS Markit/ CIPS UK Services PMI came in at 59.6 for July. higher than anticipated, but a drop from 62.4 in June. A reading over 50 shows growth rather than contraction.
Staff shortages and supply issues were a severe constraint on business capacity, which led to another strong rise in backlogs of work. Tight labour market conditions led to greater wage pressures across the service economy and this contributed to the fastest increase in overall input costs since the survey began in July 1996.
UK growth slows sharply during July ‘pingdemic’ (but by a fair bit less than initial PMI data suggested, as the July 19 reopening boosted some businesses’ spirits).
Record (25 year+) inflation pressures too.https://t.co/G2uHmu7kcz
Related: Staff shortages force restaurants and pubs to face ‘freedom day’ with fear
The British e-commerce specialist The Hut Group (THG) has snapped up online beauty retailer Cult Beauty for £275m.
The Manchester-based online firm, which listed last year, already sells directly to consumers through websites such as Lookfantastic, Glossybox and Zavvi, as well as sports nutrition company Myprotein, and racked up £1.1bn of revenues in 2019.
Cult is an authorised retailer for c.300 prestige third-party brands, two-thirds of which are not currently listed on existing The Hut Group beauty sites. The deal will also enable THG to expand Cult’s overseas presence, given <50% international sales. Demographically Cult Beauty is at the younger end of the market, with a clearer bias to indie brands.
Related: The Hut Group strikes complex joint venture deal with SoftBank
Related: Hut Group to fund private security team for founder Matthew Moulding