UK service-sector activity surged to a 10‑month high in June as new orders rocketed, reflecting robust domestic demand. S&P Global’s UK Services PMI climbed to 52.8, up from 50.9 in May, marking the fastest growth pace since August 2024. Companies credited increasing business and consumer spending, although weaker export sales and geopolitical concerns remained headwinds. Notably, the expansion in new orders was the strongest since November 2024.

This powerful uptick in services output coincides with softer inflationary pressures: input‐cost growth eased to a six‑month low and firms lowered output prices to the lowest in four years. However, employment in the sector continued to decline, falling for the ninth consecutive month—reflecting firms’ caution amid rising payroll taxes and global economic uncertainty.

The strong PMI figures support growing market expectations that the Bank of England may begin cutting interest rates, possibly as soon as August, to boost the economy.

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