UK June final services PMI 52.8 vs 51.3 prelim | Forexlive
- Prior 50.9
- Final Composite PMI 52.0 vs 50.7 prelim
- Prior 50.3
Key findings:
- New orders rise for first time in three months
- Staffing levels reduced again
- Slowest pace of prices charged inflation since
February 2021
Comment:
Tim Moore, Economics Director at S&P Global Market
Intelligence, said:
“June data highlighted a modest rebound in UK service
sector growth, fuelled by a turnaround in domestic
business and consumer spending after a soft patch
during the spring. Business activity expansion was
slightly stronger than the earlier ‘flash’ estimate for
June and the fastest seen since August 2024.
“While total new work picked up in June, shrinking
export sales were a constraint on service sector
growth. Survey respondents cited headwinds from
US tariffs and geopolitical tensions, which resulted in
subdued demand conditions across global markets.
“Meanwhile, concerns about elevated payroll costs
meant that service providers were reluctant to turn
on the hiring taps. Employment numbers decreased
for the ninth month running and at a faster pace
than in May, with job shedding again often attributed
to redundancies as well as the non-replacement of
voluntary leavers.
“The latest survey pointed to a considerable slowdown
in overall cost inflation across the service economy,
which allowed for the slowest rise in output charges
since February 2021.
“A combination of easing price pressures and lower
employment leaves the door open for the Bank of
England to resume its run of interest rate cuts at the
next policy meeting in August.”
UK Composite PMI
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