UK services PMI: ‘A slowing in services sector growth completes a triple-whammy of disappointing PMIs’

The services sector activity in the UK economy extended deterioration for the second straight month, posting a slightly bigger-than expected drop in the month of June, a fresh report from Markit Economics showed on Wednesday.

The services PMI slumped to 53.4 in June versus a 53.8 reading booked in May. Markets predicted a drop to 53.5 last month.

Key Points:

New business growth eases to nine-month low

Job creation picks up to 14-month high

Business optimism drops to second-lowest since December 2011

Chris Williamson, Chief Economist at Markit, noted: “A slowing in services sector growth completes a triple-whammy of disappointing PMI survey readings. Although the three PMI surveys are running at levels that are historically consistent with GDP growing by around 0.4% in the second quarter, it’s clear that the economy heads into the third quarter losing momentum.”