LONDON, July 3 (Xinhua) -- Britain's services business activity contracted at the fastest pace in nearly three and a half years in June, weighed down by subdued domestic economic conditions, ongoing geopolitical uncertainty and growing risk aversion among clients, data from S&P Global showed on Friday.
The seasonally adjusted S&P Global UK Services Purchasing Managers' Index (PMI) Business Activity Index stood at 48.8 in June, down from 49.3 in May and remaining below the 50.0 no-change threshold, according to the company.
Total new business received by services companies declined for the fourth consecutive month in June, with the pace of contraction accelerating to its fastest since November 2022.
Export orders also fell at a solid pace, extending the downward trend seen since March, largely due to subdued demand from European clients.
"June data confirmed a clear loss of momentum for the UK economy during the second quarter of 2026, following a positive start to the year," said Tim Moore, economics director at S&P Global Market Intelligence.
"Strong cost pressures, lacklustre demand and business uncertainties arising from the Middle East conflict were the most prominent themes highlighted by service sector firms in June," he said, adding that these factors weakened investment sentiment, increased clients' risk aversion and squeezed consumer budgets, contributing to the sharp decline in new business. ■
