Activity in Britain’s dominant services sector contracted for a second month running in June and by the most since early 2023 as the fallout from the Iran war continued to weigh on companies, a closely watched survey showed on Friday.
Services Sector Contraction
The S&P Global Purchasing Managers’ Index for the services sector in June fell to 48.8 from May’s 49.3, representing the second fall in a row in activity and the weakest since January 2023.
Overall new work contracted at the fastest pace since November 2022, with companies citing concerns about who would replace Prime Minister Keir Starmer and their fiscal policies, as well as global inflationary pressures.
The survey added to signs of a slowdown ahead of former Greater Manchester mayor Andy Burnham’s likely installation as prime minister.
There were signs that inflation pressures eased slightly, although they remained strong. The PMI’s gauge of input cost inflation fell in June to its weakest since March.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
