23rd Jun 2025 09:48
(Alliance News) - UK private sector growth quickened this month, a preliminary survey result showed on Monday, led by the services industry.
The flash UK composite purchasing managers; index rose to a three-month high of 50.7 points in June, from May's final tally of 50.3, S&P Global said. Rising further above the 50 point neutral mark, the reading suggests growth picked up this month.
"New business volumes returned to growth, ending a six-month period of contraction, although the upturn was largely confined to the service economy. Meanwhile, manufacturers posted another export-led decline in order books," S&P Global said.
The order book fall in the manufacturing economy was attributed to the impact of US tariffs, geopolitical fears and price competition in global markets, S&P Global added.
The services flash PMI rose to a three-month high of 51.3 in June, from 50.9 in May. The manufacturing PMI spiked to a five-month high of 47.7, though staying in negative territory, from 46.4 in May.
Cost pressure and "subdued demand conditions" kept a lid on staff recruitment in the private sector. Employment fell for the ninth month running and at a faster pace than May.
Inflationary pressure ebbed slightly, with input prices rising at the slowest pace in three months.
The S&P Global composite PMI survey features a panel of 650 firms. Data for the flash readings were collected between June 12 and 19.
Final data for manufacturing is released a week on Tuesday, with the composite and services results two days later.
Separate data from S&P Global, meanwhile, showed UK consumer sentiment weakened this month.
The consumer sentiment index fell to 45.0 in June, from 45.2 in May, a two-month low.
The tracker is a combination of "survey gauges tracking household financial wellbeing, labour market conditions, household spending, savings and debt".
"As the middle of the year approaches, pessimism among UK households shows no signs of improving, with consumer sentiment remaining firmly in negative territory. Concerns about making ends meet have intensified due to high prices and job insecurity. Income from employment and workplace activity rose at slower rates in June, but perhaps more importantly households reported feeling insecure in their jobs again, which will limit willingness to spend and instead encourage greater financial caution, dampening economic growth," S&P Global Market Intelligence analyst Maryam Baluch said.
By Eric Cunha, Alliance News news editor
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