- Final Services PMI 52.1 vs. 51.2 prelim and 52.9 prior.
- Final Composite PMI 52.3 vs. 51.7 prelim and 53.0 prior.
Key findings:
- UK Services Business Activity Index falls to seven- month low.
- Demand for services improves, but at relatively soft pace.
- Confidence dips slightly amid general election uncertainty.
Comment:
Joe Hayes, Principal Economist at S&P Global Market Intelligence:
"We are seeing some evidence of a pre-general election seize up across the UK services economy, with growth in business activity slowing to a seven-month low in June as the prospect of a change in government led to the adoption of a "wait-and-see" approach by some, restraining sales."
"Nevertheless, we're on track for another quarter of GDP growth, according to Composite PMI data for the three months to June, albeit one that will be less punchy than the first quarter's 0.7%."
"Prices still continue to show a high degree of stickiness across the UK service sector, although input cost inflation once again trended lower in June. The direction of travel here is encouraging for the Bank of England, but our survey's gauge of prices charged actually rose on the month as some companies noted their pricing power was strong enough to raise their fees."
"While costs, mostly from wages, have been the major driving force behind strong services inflation, the recovery of the UK economy from it's late-2023 lull adds another dynamic for policymakers to consider should stronger economic conditions motivate more companies to raise their prices."
