• Prelim was 53.4
  • May final was 53.4
  • Composite PMI 53.7 vs 53.1 exp (53.1 prior)
  • New order growth drops to 16-month low

The UK services PMI bounced from the May reading in a surprise upward revisions.

Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey:

“The service sector remained in expansion mode during June, but persistently high inflation has started to dent discretionary spending and negatively influence demand projections across the board. New order growth was the weakest since the national lockdown in early-2021, with survey respondents reporting business and consumer hesitancy in response to the uncertain economic outlook.

"June data highlighted the second-fastest rise in input prices since the survey began 26 years ago, driven by intense wage pressures and rapid increases in fuel costs. Staff shortages added to demand and supply imbalances, with subsequent constraints on business capacity acting as a further incentive to defend margins from escalating operating expenses. Around 37% of the survey panel reported an increase in their charges since May and many commented on plans to push through further price rises in the second half of 2022.

"Service providers are casting a nervous eye over their sales momentum and forward bookings, which led to a slump in business activity expectations to their lowest since May 2020. Comments from survey respondents indicated that inflation worries and the uncertain impact of higher interest rates on customer demand have replaced COVID-19 restrictions as the key factor affecting business confidence across the service economy."

input prices UK PMI