It also came as firms continued to increase prices in reaction to cost pressures from the Middle East conflict and government policy

The services sector drove the downturn in the UK economy as lower customer confidence and rising costs hit businesses.

UK Composite PMI dropped to 49.4 in June 2026, marking a second consecutive month of contraction as firms cut jobs faster and new orders weakened.

It also came as firms continued to increase prices in reaction to cost pressures from the Middle East conflict and government policy

Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or…

Most worrying was the further fall in employment, notably in the manufacturing sector...