UK business growth slumps to 14-month low as service sector shrinks

• Britain’s private sector activity has plummeted to its weakest level in 14 months, primarily driven by a period of "sustained weakness" within the crucial services industry.
• The S&P Global flash UK composite purchasing managers’ index (PMI) registered 49.4 for June, a decrease from 49.7 in May, marking the lowest level since April 2025 and falling below the 50.0 threshold that indicates growth.
• The services sector endured its weakest month in three years with a PMI reading of 48.7, attributed to sharply increasing costs and a drop in customer confidence amid concerns over the Iran war and political uncertainty within the UK.
• Although manufacturing output saw a temporary uptick due to businesses building safety stocks ahead of potential price increases, manufacturers experienced a softening of new orders, reaching a six-month low.
• Businesses continued to raise prices in June, albeit at a slower rate than in May, as they reacted to persistent cost pressures stemming from the Middle East conflict and government policy, despite a slight moderation in prices paid.

IN FULL

UK economy faces contraction as private sector activity hits 14-month low