LONDON (dpa-AFX) - The UK private sector output picked up at the strongest pace in three months in June after business volume returned to growth, flash survey results from S&P Global showed on Monday.
The flash composite output index registered 50.7 in June, up from 50.3 in May. The reading was above the crucial 50.0 no-change value for the second straight month.
Another moderate expansion of services activity contrasted with a solid decline in manufacturing production in June.
The flash services Purchasing Managers' Index rose to 51.3 in June from 50.9 in the previous month. The expected reading was 51.2.
At 47.7, the flash manufacturing PMI hit a five-month high in June. The score was expected to rise moderately to 46.9 from 46.4.
Companies reported a rise in business activity citing improving order books and a partial rebound in client confidence. Global trade tensions and rising geopolitical uncertainty were cited as growth headwinds.
New business intake increased for the first time since November 2024, reflecting a gradual turnaround in domestic business and consumer spending.
However, new work from abroad decreased for the eighth consecutive month with reductions registered in both manufacturing and services. The speed of downturn in goods exports sales continued to ease.
Strong cost pressures and subdued demand conditions remained a constraint on staff recruitment in June. Employment fell the most since May largely due to excess capacity and squeezed margins.
Input prices increased at the slowest pace in three months in June and output charges grew at the softest pace since January 2021.
Finally, business expectations for the year ahead drifted down from May's six-month high. Heightened global economic and political uncertainties alongside concerns about the broader domestic business climate were cited as the main factors.
S&P Global Market Intelligence Chief Business Economist Chris Williamson said quelling recession fears and growth of business activity disappointingly lackluster indicate a marginal 0.1 percent quarterly economic growth for the second quarter.
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