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The activity in the British private service sector increased with the fastest rate in June in June, while the growth of the prices charged by companies delayed, according to a well -viewed research that was published on Thursday.
The S&P Global UK Services PMI Final Index rose to 52.8 in June, an increase of 50.9 in May and the highest since August 2024. The last and last lecture was above the earlier June flash estimate of 51.3 and “indicative of a solid speed of expansion of business activities,” said S&P.
Tim Moore, director of the economy at S&P Global Market Intelligence, said that the improvement of the service sector in June was “fed by a change in domestic companies and consumer spending after a soft patch in the spring”.
The research also showed that the growth in the costs of companies has risen the second consecutive month, so far at the lowest in 2025 and contributing to the weakest increase in prices of service providers for almost four and a half years.
The figures offer a measure of good news for Rachel Reeves, since the Chancellor is trying to breathe new life into economic growth to finance spending plans and increase the standard of living.
Gilts gathered on Thursday after Prime Minister Sir Keir Starmer confirmed that Reeves would stay in the coming period for a “very long time” after he had not supported the House of Lower House on Wednesday.
Rob Wood, economist at Consultancy Pantheon Macro economy, said that the “huge” upward revisions of the PMIs have shown that “British growth continues to improve as worldwide policy uncertainty fades, with [US President Donald] Trump who avoids his more devastating rates and the oil prices that fell with Iran after the war was put on hold. ”
The improvement of the PMIs for services – which form about 80 percent of the economy – helped to increase the composite index, an weighted average of production and services to 52, to 52, from 50.3 in May and the highest since September 2024.
Employment in the service sector decreased according to the survey for the ninth consecutive month with a marginal faster rate than in May.
“A combination of relaxation of price pressure and lower employment leaves the door open for the Bank of England to resume its interest rate letings during the next policy meeting in August,” said Moore.
Financial markets praise a chance of more than 80 percent that De Boe will lower the rates by a quarter point of 4.25 percent now, after policy makers have reduced the loan costs four times since the summer of 2024 at the back of a weaky job market.
Separate data published by De Boe on Thursday also pointed out on the price pressure in general.
Companies predict wage growth for the coming year at 3.6 percent in the three months to June, the lowest rate since the demand was first set on a regular basis in May 2022, according to the Boe’s Decision Maker Panel, a monthly overview of Chief Financial Officers.
Companies expected wage growth to fall by 1 percentage point in the coming 12 months, based on the averages of three months, according to the survey.
However, the downward trend was less clear in the last monthly data, where wood stated that the expected wage growth in June was unchanged from May and the expected price growth was marginally higher.
A rebound in the expectations of business employment for the coming year – at 1.1 percent last month, an increase of 0.2 percent in May – pointed to “for a need for the monetary policy committee caution,” Wood added.
