FX.co ★ UK Services Downturn Deepens in June

The S&P Global UK Services PMI for June 2026 was revised up slightly to 48.8 from a preliminary estimate of 48.7, but remained below May’s reading of 49.3. The data signalled a second consecutive monthly contraction in the services sector, with the pace of decline quickening to its sharpest since January 2023.

Total new business fell for the fourth month in a row, and the rate of decline was the fastest since November 2022. Survey respondents cited weaker demand amid global inflationary pressures linked to the Middle East conflict and increased domestic political uncertainty.

Export orders fell further in June. Softer demand from European clients continued to outweigh strong sales to the United States. Employment levels were cut again, with job losses occurring at the quickest pace since February.

Both input cost inflation and prices charged rose at slower rates, though overall inflationary pressures remained firm. Expectations for business activity over the year ahead improved slightly compared with May, when confidence had dropped to a 13‑month low.