June’s flash S&P Global Services PMI signals contraction, defying expectations of stabilization at 50.0 and weighing on GBP.
The UK’s flash S&P Global Services PMI dropped to 48.7 in June, below the 50.0 estimate and down from 49.3 in May. The decline marks a faster contraction in the services sector, contributing to a broader slowdown in private business activity.
Economists had anticipated a reading of 50.0, which would have indicated no change in activity. The Composite PMI also fell to 49.4 from 49.7, while the Manufacturing PMI slipped to 53.1 from 53.9, missing forecasts of 53.6.
The British Pound extended losses against the US Dollar following the release, trading 0.26% lower at 1.3215. Analysts noted persistent price pressures linked to energy shocks and supply constraints from geopolitical tensions.