Recent data revealed that the UK services sector recorded its biggest drop in activity in three and a half years last June, amid rising operating costs and falling demand.
Conversely, some hospitality companies have benefited from the momentum generated by the FIFA Club World Cup in recent weeks, which has helped to boost their business.
A survey of the Purchasing Managers’ Index (PMI) for the UK services sector, issued by S&P Global, showed the index falling to 48.8 points in June, compared to 49.3 points in May, marking its lowest level since January 2023, according to the British news agency PA Media.
A reading above 50 points indicates sector growth, while a reading below this level reflects a contraction in economic activity.
Companies operating in the hospitality, entertainment, transport, financial and professional services sectors reported that weak economic conditions in the United Kingdom, along with a growing tendency among customers to avoid risks as a result of tensions in the Middle East, have negatively affected demand levels.
