UK Services Activity Returns to Growth in July

2026-07-24 08:54 By Agna Gabriel 1 min. read

The S&P Global UK Services PMI rose to 51.8 in July 2026 from 48.8 in June, reaching a three-month high and signaling a return to expansion in the services sector, beating market expectations of 49.4, flash data showed.

Business activity increased for the first time since April, with firms reporting stronger demand for consumer services, particularly in parts of the hospitality industry, supported by the FIFA World Cup.

However, many companies continued to highlight elevated client uncertainty linked to the conflict in the Middle East, while some also said unusually hot weather weighed on activity.

Outstanding business declined further, reflecting another marked reduction in backlogs of work, and service providers continued to trim staffing levels.

On the inflation front, input cost pressures moderated, with service firms reporting softer increases in operating expenses.

Business confidence also improved, as companies became more optimistic about activity over the coming year.



News Stream
UK Services Activity Returns to Growth in July
The S&P Global UK Services PMI rose to 51.8 in July 2026 from 48.8 in June, reaching a three-month high and signaling a return to expansion in the services sector, beating market expectations of 49.4, flash data showed. Business activity increased for the first time since April, with firms reporting stronger demand for consumer services, particularly in parts of the hospitality industry, supported by the FIFA World Cup. However, many companies continued to highlight elevated client uncertainty linked to the conflict in the Middle East, while some also said unusually hot weather weighed on activity. Outstanding business declined further, reflecting another marked reduction in backlogs of work, and service providers continued to trim staffing levels. On the inflation front, input cost pressures moderated, with service firms reporting softer increases in operating expenses. Business confidence also improved, as companies became more optimistic about activity over the coming year.
2026-07-24
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