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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