UK Services Downturn Deepens in June

2026-07-03 08:46 By Luisa Carvalho 1 min. read

The S&P Global UK Services PMI was revised slightly higher to 48.8 in June 2026 from a preliminary estimate of 48.7, though below May's reading of 49.3.

The data showed the services sector contracted for a second successive month, with the pace of decline accelerating to its steepest since January 2023.

Total new work received fell for the fourth consecutive month and the rate of contraction accelerated to its fastest since November 2022.

Survey respondents attributed weaker demand to global inflationary pressures linked to the Middle East conflict and heightened domestic political uncertainty.

Export orders fell further in June, with weak demand from European clients continuing to outweigh robust sales to the United States.

Employment numbers were again reduced and at the fastest pace since February.

Both input and output inflation slowed, but remained solid overall.

Business activity expectations for the year ahead improved slightly from May's 13-month low.



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UK Services Downturn Deepens in June
The S&P Global UK Services PMI was revised slightly higher to 48.8 in June 2026 from a preliminary estimate of 48.7, though below May's reading of 49.3. The data showed the services sector contracted for a second successive month, with the pace of decline accelerating to its steepest since January 2023. Total new work received fell for the fourth consecutive month and the rate of contraction accelerated to its fastest since November 2022. Survey respondents attributed weaker demand to global inflationary pressures linked to the Middle East conflict and heightened domestic political uncertainty. Export orders fell further in June, with weak demand from European clients continuing to outweigh robust sales to the United States. Employment numbers were again reduced and at the fastest pace since February. Both input and output inflation slowed, but remained solid overall. Business activity expectations for the year ahead improved slightly from May's 13-month low.
2026-07-03
UK Services Sector Surprises on the Downside
The S&P Global UK Services PMI fell to 48.7 in June 2026 from 49.3 in the prior month, missing market forecasts of 50.5, flash estimates showed. The data signaled the second consecutive month of downturn and the steepest since January 2023, as ongoing price pressures remain elevated and lower customer confidence dampened activity. New business volumes declined at a faster pace, driving a steeper fall in backlogs and headcount reductions. Input prices continued to rise sharply due to multiple inflation pressures, including elevated transport costs and IT equipment surcharges, although the overall rate of inflation eased from April’s high, leading to a slightly softer increase in selling prices.
2026-06-23
UK Services Sector Remains Stuck in Contraction
The S&P Global UK Services PMI was revised up to 49.3 in May 2026 from a flash estimate of 47.9, but down from April’s 52.7, signalling the first downturn since April last year. New orders fell for a third month amid persistently subdued domestic and overseas demand due to elevated economic and political uncertainty. Hospitality and transport highlighted weaker discretionary spending and higher input costs, while professional services cited rising client risk aversion. Service providers cut payrolls sharply, with job shedding the fastest since February. Input cost inflation remained elevated, easing only slightly from April’s 41-month high, driven by higher energy, fuel and transport costs as well as rising wages and technology expenses. Output price inflation eased from April’s 39-month peak as firms passed on higher costs. Business expectations for the year ahead fell to their weakest since April 2025, mainly reflecting concerns over rising price pressures.
2026-06-03