UK PMI Services was finalized at 52.8 in June, up from May’s 50.9, marking the fastest pace of expansion since August 2024. Composite PMI also rose to 52.0, the highest since September. The data signals a modest but broadening recovery, driven by improving domestic demand. S&P Global’s Tim Moore noted that consumer and business spending showed signs of a turnaround after a sluggish spring.
However, the rebound was tempered by “shrinking export sales”, with survey respondents citing pressures from US tariffs and geopolitical uncertainty. Additionally, firms were “reluctant to turn on the hiring taps”, marking the ninth straight month of job shedding.
For the BoE, input cost inflation slowed noticeably, helping to ease pressure on output prices, which saw their weakest rise in over three years. With price pressures softening and labor markets cooling, today’s report strengthens the case for the BoE to deliver another rate cut in August.
