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Aug 24 2021, 07:00 IST/BST
Yesterday’s flash UK composite PMI for August at 55.3 suggests that GDP growth in Q3 2021 may fall short of the 1.8% we had forecast, instead likely to be in the 0.5-1.0% range. However, the statistical relationship between the PMIs and GDP growth is currently very uncertain. Also, the slowdown clearly reflects that output is struggling to respond to strong new orders and demand due to capacity constraints and raw materials and labour shortages.