United Kingdom: Services activity accelerates in July
The S&P Global UK Services Purchasing Managers’ Index (PMI) rose to 52.5 in July from 52.1 in June. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in services-sector business activity compared to the previous month.
The uptick was primarily driven by the strongest increase in demand since May 2023, with significant new business wins both domestically and in overseas markets. Moreover, employment within the UK service sector grew at its fastest rate in over a year, reflecting companies’ responses to increased demand.
Input costs and output charges rose markedly, though at some of the weakest rates seen in over three and a half years. Finally, business confidence rebounded to a five-month high, buoyed by the result of the general election—which saw a large parliamentary majority for the center-left Labour Party.