The UK private sector economy contracted for the second straight month in June, with S&P Global’s flash Composite PMI dropping to 49.4. That’s down from 49.7 in May and marks the lowest reading in 14 months.
What the numbers actually show
The flash estimate, released on June 23, paints a picture of an economy losing momentum across multiple fronts. Firms are cutting jobs at an accelerating pace, new orders are weakening, and business expectations have dimmed considerably.
The contraction is particularly notable because it follows what had been a sustained period of expansion. The UK private sector had been growing for 13 consecutive months before May’s reading broke the streak, marking the first contraction since April 2025.
May’s initial reading had actually come in at a more alarming 48.5 before being revised upward to 49.7. The June figure of 49.4 suggests that even after the upward revision, the underlying trend is deteriorating rather than stabilizing.
