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- UK services PMI unexpectedly fell in June
UK services PMI unexpectedly fell in June
According to the report from IHS Markit/CIPS, service providers indicated that business activity was close to stagnation in June, which contrasted with the modest recovery seen during the previous month. The latest survey also revealed subdued client demand and a further reduction in work-in-hand. Despite stalling business activity, staffing numbers picked up at the fastest pace since August 2017. Survey respondents noted that they had started to find it easier to fill long-term vacancies. Some firms also commented on efforts to maintain business expansion plans in the hope of improved business conditions following a resolution to the prevailing political uncertainty.
The seasonally adjusted UK Services PMI Business Activity Index posted 50.2 in June, down from 51.0 in May and the lowest reading for three months. Moreover, the index registered only fractionally above the 50.0 no-change mark and therefore signalled that business activity was close to stagnation in June.
The latest survey also showed that UK private sector output declines for the first time in almost three years. At 49.2 in June, the seasonally adjusted All Sector Output Index fell from 50.7 in May and signalled a reduction in overall private sector business activity for the first time in 35 months. A fractional increase in service sector activity was more than offset by marked declines in manufacturing production and construction output during June.
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