UK Services Sector Gets a Fresh Surge in June
For the tenth straight month, the UK’s services industry outgrew expectations and started to get back on track after a sluggish spring period.
The SP Global UK Services PMI jumped to 52.8 in June from 50.9 in May, signalling a solid, yet modest resurgence in spending by both consumers and businesses.
What the Numbers Are Telling Us
- Fastest growth rate in ten months: The June PMI reflected robust expansion, the strongest seen since August 2024.
- Inflation easing: Lower price pressures provided more room for business investment.
- Consumer confidence returns: People are starting to spend again, boosting the services chain.
Expert Take: Tim Moore on the Turnaround
“June data highlighted a modest rebound in UK service sector growth,” says Tim Moore, Economics Director at S&P Global. He adds that the recovery is due mainly to a revitalised soundtrack of business and consumer spending, which had gone quiet during the spring.
He notes that the actual expansion was slightly stronger than the initial “flash” projection for June, and has been the quickest uptick since August last year. Despite this, payroll cost concerns have made companies wary of hiring new staff.
Employment Update
Unfortunately, job numbers slipped for the ninth month in a row, and the drop accelerated compared to May. The decline is mainly attributed to:
- Redundancies that came back in the workforce.
- The inability to replace voluntary leavers.
In short, while the services industry is finally pushing up the bell, wage‑related headaches still loom over payroll decisions.
