UK economy shrinks for second straight month, flash PMI shows
S&P Global’s purchasing managers’ index slipped to 49. 4, slightly down from 49. 7 in MayPublished Tue, Jun 23, 2026 · 05:58 PM[LONDON] The UK economy shrank for a second consecutive month in June,. . .
S&P Global’s purchasing managers’ index slipped to 49. 4, slightly down from 49. 7 in MayPublished Tue, Jun 23, 2026 · 05:58 PM[LONDON] The UK economy shrank for a second consecutive month in June, according to a prominent private sector survey that showed firms cutting more jobs. S&P Global’s purchasing managers’ index slipped to 49. 4 in the initial “flash” estimate, a 14-month low and slightly down from 49. 7 in May. All readings below 50 point to economic contraction. The survey gives weight to the expectation of many economists who fear stagnant UK output in the second quarter of 2026, a disappointing slowdown after the country recorded the fastest growth in the Group of Seven in the first quarter. The UK’s Labour government has struggled to deliver consistently higher growth, a key promise when it was elected in 2024. It will now try again under a different leader, following the resignation of Prime Minister Keir Starmer on Monday. Rising joblessness has become a problem for Labour and the S&P’s sub-index measuring employment has been in negative territory for 21 months. It dipped to 46. 8 in June from 47. 1 with S&P citing ongoing pressures from conflict in the Middle East. Input and output costs are still rising, but the pace has eased, the survey suggested. “Some of the war-related price pressures have started to moderate,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “The subdued growth and labour market pictures suggest that demand and wage-bargaining power are sufficiently slack to prevent inflation becoming entrenched. ” BLOOMBERG