• Prior 52.8
• Final Composite PMI 51.5 vs 51.0 prelim
• Prior 52.0

Key findings:

• Modest increase in service sector business activity
• Renewed fall in total new work
• Sharpest decline in employment since February

Comment:

Tim Moore, Economics Director at S&P Global Market
Intelligence, said:

“UK service providers recorded a third consecutive
monthly rise in business activity, but they were unable
to maintain the growth rate achieved in June.

“Moreover, new business intakes swung back into
contraction during July, with the downturn in order
books the fastest for just over two-and-a-half years.
Risk aversion and low confidence among clients were
the main reasons provided for sluggish sales pipelines,
alongside an unfavourable global economic backdrop.

“Hiring trends were especially subdued, with total
workforce numbers decreasing to the greatest extent
since February. Worries about rising payroll costs were
cited as the main factor holding back recruitment.

“Suppliers again sought to pass on rising employment
costs, although the latest increase in input prices
across the service economy was the slowest since
December 2024.

“Despite headwinds from strong cost pressures and
lacklustre domestic economic conditions, service
providers remain upbeat overall regarding the year
ahead business outlook. Optimism improved since
June, helped by receding concerns about US tariffs and
hopes of a boost to business and consumer spending
from interest rate cuts in the second half of 2025.”