FX.co ★ UK Services Sector Growth Unexpectedly Slows

The S&P Global UK Services PMI declined to 51.2 in July 2025 from 52.8 in June, falling short of market expectations which anticipated a level of 53, as revealed by preliminary estimates. Service providers have identified fragile domestic economic conditions and increased geopolitical uncertainty as primary factors affecting their sales pipelines. The sector experienced a reduction in new orders, marking the lowest level since April, partially due to diminished demand from international markets. In response to these conditions, firms continued to reduce their workforce, with job losses in the services sector intensifying. On the pricing side, service providers increased their charges at a quicker rate during the month. Despite these challenges, private sector firms generally remain optimistic, anticipating an increase in business activity over the next 12 months.