NatWest's Regaining Momentum argues that the UK economy has remained more resilient than expected, with improving business activity, easing supply chain pressures and early signs that AI is supporting productivity without disrupting the labour market.
- July's composite PMI rose to 52.2, while manufacturing output reached its fastest pace in almost two years as domestic and export demand strengthened and supply chain pressures eased.
- Although AI-exposed occupations have seen a sharper decline in vacancies, the report argues this reflects the lingering effects of remote working as much as automation, while productivity gains remain concentrated in technology-producing sectors.
- The latest energy shock appears significantly less damaging than in 2022, with businesses largely passing higher costs on through prices rather than cutting investment or weakening balance sheets.
Read the full report for NatWest's latest assessment of the UK economy, AI adoption and the evolving inflation outlook.
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