- Prior 55.2
- Composite PMI 52.8 vs 52.8 prelim
- Prior 54.0
No change to the initial estimates as the UK services sector growth loses momentum towards the end of Q2. The goods news is that cost pressures are seen easing but worries about the economic climate are evidently starting to take a toll again. S&P Global notes that:
"The service sector showed renewed signs of fragility in June as rising interest rates and concerns about the UK economic outlook took their toll on customer demand. Business activity increased at the slowest pace for three months, while the rate of new order growth eased further from April's recent peak.
"Survey respondents typically cited more cautious decision-making among clients and a loss of momentum for spending on consumer services. Higher borrowing costs were also reported as contributing to more subdued business conditions in June, partly due to weaker spending in the construction and real estate sectors.
"Despite another slowdown in service sector growth, the latest survey indicated that labour market conditions remained relatively strong. Job creation reached a nine-month high as an improvement in candidate availability allowed firms to backfill vacancies and rebuild business capacity.
"Service providers experienced a moderation in overall input price inflation, with business expenses rising at the weakest pace since May 2021. However, cost pressures were still among the strongest seen since the survey began in July 1996 as widespread increases in salary payments offset falling fuel bills and energy prices."