Activity in the UK’s service sector lost momentum last month as firms reported “sluggish” demand, according to new figures.
The S&P Global UK services PMI survey scored 51.8 in July, dipping from a reading of 52.8 in June.
Any reading above 50 means the sector is growing while a score below means it is contracting.
It was stronger than expected by economists, who had predicted a reading of 51.2.
The influential survey nevertheless pointed to slowing business activity in the face of “sluggish demand at home and abroad” amid another fall in new work for businesses in the sector.
Companies reported the fastest decrease in their order books for around two-and-a-half years.
Tim Moore, economics director at S&P Global Market Intelligence, said: “UK service providers recorded a third consecutive monthly rise in business activity but they were unable to maintain the growth rate achieved in June.
“Risk aversion and low confidence among clients were the main reasons provided for sluggish sales pipelines, alongside an unfavourable global economic backdrop.
“Hiring trends were especially subdued, with total workforce numbers decreasing to the greatest extent since February.”
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