23.06.202609:05:35UTC+00UK Private Sector Activity Falls for 2nd Month

The S&P Global UK Composite PMI slipped to 49.4 in June 2026 from 49.7 in May, marking a second consecutive month of contraction after 11 months of expansion in private sector activity, according to a flash estimate. The reading undershot expectations for a return to growth at 50.6.

Services activity weakened further (48.7 vs 49.3 in May), more than offsetting a stronger pace of expansion among goods producers (53.6 vs 52.2). Overall private sector sales recorded their sharpest decline since April 2025, as a fall in services demand outweighed continued, albeit slowing, growth in manufacturing, which eased to a six‑month low. In parallel, backlogs of work rose at the fastest rate in seven months.

On the cost side, input price inflation moderated for the second month running, as a modest easing of tensions in the Middle East reduced upward pressure on energy prices. Even so, input cost growth remained above its long‑run average, and output charge inflation also softened.

Employment continued to decline at a brisk pace, with firms still pointing to higher National Insurance contributions as a key factor.