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2026.07.2408:49:11UTC+00UK Private Sector Activity Recovers

The S&P Global UK Composite PMI rose to 52.1 in July 2026 from 49.3 in June, returning to expansion after two months of contraction and significantly exceeding market expectations of 49.7, according to a flash estimate. The pickup in activity was supported by both manufacturing (53.6 vs. 52.6 in June) and services (51.8 vs. 48.8), with the latter rebounding from second-quarter declines after the war in Iran pushed up energy prices, increased operating costs, and dampened consumer demand. The services sector also benefited from stronger hospitality activity, as favorable weather and FIFA World Cup matches encouraged higher household spending. Overall, new business rose slightly, with factories recording their strongest improvement in four years, though firms continued to work through existing backlogs. Early in the month, input costs eased amid improved logistics from the Middle East, although elevated labor costs continued to weigh on staffing levels.

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