The United Kingdom's service sector growth slowed in July, a report by S&P Global showed on Thursday. The S&P Global/CIPS UK Services PMI Business Activity Index stood at 51.5, falling from 53.7 recorded in June and unchanged from the preliminary July reading.
"The loss of momentum signalled by service providers in July suggests that the UK economy is set to flatline at best in the coming months as higher borrowing costs take a bigger toll on consumer spending and business confidence," Tim Moore, economics director at S&P Global Market Intelligence, stated. "Service sector companies saw the weakest rise in new work for six months, while job creation slipped as some firms responded to softer market conditions by putting the brakes on hiring," he added.
Meanwhile, the S&P Global/CIPS UK Composite Output Index declined from 52.8 in June to 50.8 in July.
