The UK’s services sector returned to modest growth in June, defying broader economic concerns and offering a glimmer of hope amid a backdrop of rising taxes, falling employment and geopolitical instability.
According to S&P Global’s latest flash purchasing managers’ index (PMI), business activity reached a three-month high, with the composite index rising to 50.7 from 50.3 in May. Any figure above 50 indicates expansion.
While the numbers suggest some resilience following a turbulent spring – marked by President Trump’s global tariff hikes and Chancellor Rachel Reeves’ sweeping tax rises – economists warned the recovery remains fragile and uneven.
Service providers reported a rise in client demand, marking the first monthly increase since November last year. However, firms remain reluctant to hire, with private sector employment falling for the ninth consecutive month – and at a faster rate than in May.
The latest data shows that while new business orders edged up domestically, foreign demand fell for the eighth month in a row, suggesting continued unease in global markets since Trump’s so-called “Liberation Day” trade announcements.
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