FX.co ★ UK Services Activity Returns to Growth in July

The S&P Global UK Services PMI rose to 51.8 in July 2026 from 48.8 in June, a three-month high that signals a return to expansion in the services sector and exceeds market expectations of 49.4, according to flash estimates. Business activity increased for the first time since April, with firms citing stronger demand for consumer services—particularly within segments of the hospitality industry—boosted by the FIFA World Cup.

Nevertheless, many companies continued to report elevated client uncertainty related to the conflict in the Middle East, and some noted that unusually hot weather dampened activity. Outstanding business fell further, reflecting another sharp reduction in work backlogs, while service providers continued to pare back staffing levels.

On the inflation front, input cost pressures eased, with service firms reporting more moderate increases in operating expenses. Business confidence also strengthened, as companies became more optimistic about activity over the year ahead.