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UK Service Sector Maintains Recovery but Slows from May’s Record High

July 5, 2021 by Forex Winner Leave a Comment

UK Service Sector Maintains Recovery but Slows from May’s Record High

Source: IHS Markit

Service activity in the UK maintained a robust expansion in June, with the activity index hitting 62.4, slightly below a 24-year high of 62.9 in May.

FTSE 100 is up +0.60%, GBPUSD is up +0.11%.

UK Services PMI business activity index
  • The service sector in June was the second-highest since October 2013 and exceeded the month’s flash reading of 61.7
  • The service index reading in the second quarter was 62.1, the highest for any other quarter in the last 24 years.
  • The rise in service sector activity was underpinned by sharp rises in price and costs, with inflation for both reaching record highs
  • Backlog of work rose at the fastest rate since 1996 as service businesses struggled to meet demand amid staff constraints.
  • Strong demand accelerated employment opportunities, with the rate of job creation at its strongest in seven years
  • More than 60% of survey respondents see a surge in business activity in the rest of the year, while only 8% project a reduction.

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