05.08.202608:48:31UTC+00UK Services Expansion Confirmed

The S&P Global UK Services PMI rose to 52.1 in July 2026, revised up from the flash estimate of 51.8 and rebounding from 48.8 in June. This confirms a return to modest growth after two consecutive months of contraction.

New business increased for the first time since February, supported by stronger consumer spending and robust demand for technology services. In contrast, new export business declined for the fifth consecutive month, although the rate of contraction was the slowest in the current sequence. Geopolitical uncertainty linked to the conflict in the Middle East continued to weigh on growth prospects.

Employment fell for the 22nd month in a row, but the pace of job shedding was the weakest since October 2025. On the cost side, input price inflation eased for the third consecutive month to its lowest level since February, helped by lower fuel and gas prices. Output charge inflation also cooled, slipping to a five-month low.

Business confidence improved, reaching its highest level in five months, underpinned by expectations of greater global economic stability, stronger sales pipelines, and higher business investment.