The S&P Global UK Composite PMI slipped to 49.3 in June 2026 from 49.7 in May, below the flash estimate of 49.4. This marked a second consecutive month of contraction in UK private sector activity after 11 months of expansion and contrasted with initial expectations of a return to growth at 50.6.
By sector, activity declined in services (48.8 vs 49.3 in May), more than offsetting ongoing growth in manufacturing, which nonetheless slowed (52.5 vs 53.9). Overall private sector sales recorded their steepest drop since April 2025, as weakness in services outweighed still-positive, but moderating, demand in manufacturing. Backlogs of work also rose sharply.
On the cost side, input price inflation eased for a second month, helped by a modest de-escalation in the Middle East that reduced upward pressure on energy prices, although input cost growth remained above its long-run average. Output charge inflation also softened.
Employment continued to decline at a brisk pace, with firms reporting the impact of higher National Insurance contributions. Nonetheless, business confidence about the outlook improved.
