- 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.”