LONDON (dpa-AFX) - The UK service sector growth softened in July as new business intakes swung back into contraction, survey results from S&P Global showed on Tuesday.
The headline services Purchasing Managers' Index dropped to 51.8 in July from 52.8 in June. The score has remained above the neutral 50.0 mark for the third straight month and also above the initial estimate of 51.2.
Total new work contracted at the fastest pace since November 2022. Export sales also declined in July, which was linked to fragile global economic conditions and elevated geopolitical tensions.
There was a solid reduction in staffing in July. Respondents cited hiring freezes and redundancies in response to subdued demand and robust input cost inflation.
Input price inflation moderated to its lowest so far this year. Meanwhile, prices charged inflation accelerated as service providers passed through some of the recent rise in their payroll costs.
Sentiment improved in July to the second highest since October 2024 despite a range of domestic economic headwinds.
Overall private sector growth moderated in July from a nine-month high. The composite output index fell to 51.5 from 52.0 in June. The flash reading was 51.0.
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