[UK Services Shrunk Sharply Due to the Iran War] Affected by the ongoing war with Iran, activity in the UK's dominant services sector contracted for the second consecutive month in June, marking the largest drop since early 2023. The final reading of the UK's June services PMI fell to 48.8 from 49.3 in May, marking the second consecutive month of decline and the lowest level since January 2023. This figure was also lower than the previously released preliminary estimate of 48.7. A reading below 50 indicates that the services sector is in contraction. Overall, new business contracted at the fastest pace since November 2022. Businesses expressed concerns about who will succeed Prime Minister Starmer and his fiscal policies, as well as global inflationary pressures.
