Growth in UK service sector accelerates as demand hits 14-month high
The S&P Global UK services PMI survey scored 52.5 in July, increasing slightly from 52.1 in the previous month.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Growth in the UK’s services sector picked up last month, as firms recorded the strongest levels of demand for over a year.
Experts said that there was a slight rebound following the result of the general election, which increased certainty for firms.
The S&P Global UK services PMI survey scored 52.5 in July, increasing slightly from 52.1 in the previous month.
It was marginally ahead of economists’ predictions.
The headline score remained above the 50.0 threshold for the ninth month in a row, which means that activity in the sector is still growing.
Joe Hayes, principal economist at S&P Global Market Intelligence, said: “With the general election period coming to an end at the start of July, survey data for last month showed the UK service sector enjoyed a modest rebound after a fairly subdued end to Q2.
“The business activity index crept up only slightly, but the New Business Index jumped by over three points to its highest level in 14 months as firms reported an influx of new clients and contracts.”
The report found service firms witnessed the strongest upturn in demand since May last year after firms found more new business from overseas market.
It also found that service sector employment in the UK rose at its fastest pace in over a year.
This came as business confidence rebounded after a slipping to a recent low in last month’s data.
Nevertheless, the survey data revealed “further stubbornness” in pricing as both input costs and output charges rose at historically elevated rates.
Operating costs were pushed higher by transport, IT, wages and supplier fees, according to surveyed firms.