UK Services Expansion Confirmed

2026-08-05 08:48 By Luisa Carvalho 1 min. read

The S&P Global UK Services PMI increased to 52.1 in July 2026, revised up from the preliminary 51.8 and recovering from June's 48.8, confirming a return to modest expansion following two months of contraction.

New work increased for the first time since February, on stronger consumer spending and solid demand for technology services, while overseas new business declined for a fifth straight month, though at the slowest pace in the sequence.

Geopolitical uncertainty surrounding the Middle East conflict remained a key growth headwind.

Employment fell for a 22nd consecutive month, albeit at the slowest pace since October 2025.

Meanwhile, input price inflation eased for a third straight month to its lowest level since February, aided by lower fuel and gas costs, while output price inflation slowed to a five-month low.

Business confidence climbed to its highest level in five months on hopes of greater global economic stability, stronger sales pipelines, and increased business investment.



News Stream
UK Services Expansion Confirmed
The S&P Global UK Services PMI increased to 52.1 in July 2026, revised up from the preliminary 51.8 and recovering from June's 48.8, confirming a return to modest expansion following two months of contraction. New work increased for the first time since February, on stronger consumer spending and solid demand for technology services, while overseas new business declined for a fifth straight month, though at the slowest pace in the sequence. Geopolitical uncertainty surrounding the Middle East conflict remained a key growth headwind. Employment fell for a 22nd consecutive month, albeit at the slowest pace since October 2025. Meanwhile, input price inflation eased for a third straight month to its lowest level since February, aided by lower fuel and gas costs, while output price inflation slowed to a five-month low. Business confidence climbed to its highest level in five months on hopes of greater global economic stability, stronger sales pipelines, and increased business investment.
2026-08-05
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