Chart 22 Purchasing managers’ index of manufacturing and services output (diffusion index, 50 = no change)  Source: Markit.Latest observation: August 2019. The adjustment for the growth outlook has been accompanied by a downward revision in projected inflation over our forecast horizon.
The pace of economic expansion here and abroad is evidently contributing to some price pressures at earlier stages of the production process and in energy markets, and the decline in the dollar’s exchange rate has fostered a modest firming of core import prices.