Britain’s service sector growth slowed to a seven-month low in June, impacting overall private sector growth, according to data provider S&P Global.
The slowdown was influenced by election-related uncertainties following Rishi Sunak’s general election call, causing a pause in client spending decisions.
Flash UK PMI composite figures fell to 51.7 in June from 53.0 in May, marking the lowest level since last November.
Overall, UK flash PMI a bit on the weak side. Manufacturing actually beat expectations and is now firmly in expansion territory, services still expanding but a good bit weaker than forecast
— John Stepek (@John_Stepek) June 21, 2024
Despite the slowdown in the service sector, the manufacturing industry recorded the sharpest rise in production levels in over two years.
Flash UK manufacturing PMI increased to 51.4 from 51.2 in May, a 23-month high.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “Flash PMI survey data for June signal a slowing in the pace of economic growth, indicating that GDP is now growing at a sluggish quarterly rate of just over 0.1%.
“The slowdown in part reflects uncertainty around the business environment in the lead up to the general election, with many firms seeing a hiatus in decision making pending clarity on various policies.”