S&P Global UK Services PMI – June update

Upturn in UK services economy slows further in June

S&P Global have published their latest Purchasing Managers’ Index (PMI) report:

• The UK Services Business Activity Index fell to a seven-month low
• Demand for services has improved, but at relatively soft pace
• Confidence dipped slightly due to UK general election uncertainty

The UK service sector continued to experience greater levels of business activity at the end of the second quarter, continuing the current sequence of growth over the last 8 months. However, momentum was lost in June, with the upturn at its weakest since November 2023 as the UK general election led customers to adopt a “wait-and-see” approach before placing orders and commissioning significant new projects. The pace of job creation also slowed.

Meanwhile, cost pressures continued to improve, but still remained elevated. However, the rate of output price inflation accelerated slightly from the recent low in May.

The S&P Global UK Services PMI® is compiled by S&P Global from responses to questionnaires sent to a panel of around 650 service sector companies. Sectors covered include consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services.