UK services sector sees mild slowdown, less alarming – PMI

Growth among Britain’s services companies decelerated in June to its lowest level since November, with the S&P Global UK Services Purchasing Managers Index (PMI) falling to 52.1 from 52.9 in May.

Despite the slowdown, this figure was revised up from an initial estimate of 51.2, indicating a slightly better performance than previously thought.

According to S&P Global, the decline in activity was attributed to businesses adopting a cautious “wait-and-see” approach ahead of Britain’s July 4 national election.

Joe Hayes, principal economist at S&P Global Market Intelligence, highlighted signs of a slowdown in the UK services economy ahead of the general election.

The report suggests that the UK economy is likely to continue growing in the coming quarter, although at a pace expected to be slower than the 0.7 per cent expansion recorded in the first quarter of the year, Hayes added.