Financial News: U.K. Private Sector Shrinks For Second Month

U.K. Private Sector Shrinks For Second Month

06/23/2026 - 09:25:00 (RTTNews)

(RTTNews) - The UK private sector contracted for the second straight month in June due to the sustained weakness in the services sector, flash results of the purchasing managers' survey by S&P Global showed Tuesday.

The flash composite output index dropped to a 14-month low of 49.4 in June from 49.7 in the previous month.

The downturn was caused by the services sector, where sharply rising costs and lower consumer sentiment dampened activity. The weakness in services was partly offset by an increase in manufacturing output. At 48.7, the services Purchasing Managers' Index hit a 41-month low and dropped from 49.3 in May. The score was seen at 50.0.

The manufacturing PMI dropped more-than-expected to 53.1 from 53.9 in the previous month. The expected reading was 53.5.

"A disappointing June 'flash' PMI indicates that the economy contracted for a second successive month, albeit at only a 0.1 percent rate and merely flat-lining over the second quarter as a whole," said S&P Global Market Intelligence Chief Business Economist Chris Williamson.

New business volumes declined at the fastest rate in 14 months, leading to a steeper fall in backlogs of work and a trimming of headcounts.

Regarding inflationary pressures, the PMI survey showed that input prices continued to rise sharply in June. However, the rate of inflation moderated from April's 41-month high, leading to a slightly softer increase in selling prices.

Finally, expectations for the coming twelve months improved in June from May's recent nadir, although they remained weaker than the levels observed prior to the Middle East conflict.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Thirty-Year Bond Auction Attracts Average Demand (35 min(s), 19 sec(s) ago)
(RTTNews) - The Treasury Department finished off this week's series of announcements of the re ...Full Story»

U.S. Producer Prices Unexpectedly Flat In July, Annual Growth Slows To 4.7% (03 hr(s), 31 min(s), 19 sec(s) ago)
(RTTNews) - A report released by the Labor Department on Thursday showed producer prices in the U. ...Full Story»

U.S. Jobless Claims Climb More Than Expected To 209,000 (03 hr(s), 57 min(s), 19 sec(s) ago)
(RTTNews) - First-time claims for U.S. unemployment benefits climbed by more than expected in the ...Full Story»

Turkey Current Account Gap Widens In June (04 hr(s), 48 min(s), 19 sec(s) ago)
(RTTNews) - Turkey's current account deficit increased in June from the previous year, accordi ...Full Story»

U.S. Producer Prices Unexpectedly Unchanged In July (05 hr(s), 06 min(s), 19 sec(s) ago)
(RTTNews) - A report released by the Labor Department on Thursday showed producer prices in the U. ...Full Story»

U.S. Weekly Jobless Claims Climb More Than Expected (05 hr(s), 09 min(s), 19 sec(s) ago)
(RTTNews) - First-time claims for U.S. unemployment benefits climbed by more than expected in the ...Full Story»

Croatia Producer Price Inflation Eases To 4.9% (06 hr(s), 17 min(s), 19 sec(s) ago)
(RTTNews) - Croatia's producer price inflation eased for the second straight month in July, fi ...Full Story»

Norway Keeps Key Interest Rate Unchanged (06 hr(s), 41 min(s), 19 sec(s) ago)
(RTTNews) - Norges Bank left its key interest rate unchanged on Thursday but kept the door open fo ...Full Story»