The United Kingdom's economy recorded a slight contraction in June, as weaker activity in the services sector dragged down overall performance, according to data from the UK Composite Purchasing Managers' Index (PMI). The index, compiled by S&P Global, fell to 49.3 in June from 49.7 in May, marking the second consecutive month below the 50.0 threshold that separates expansion from contraction.
Services Sector Drives Decline
The decline was primarily attributed to weaker performance in the services sector, which accounts for roughly three-quarters of the UK economy. The services PMI dropped to 49.1 in June from 49.5 in May, signaling a contraction in the sector that has been the main driver of economic growth. This pushed the broader private sector into contraction during the month.
Broader Economic Impact
The manufacturing sector also remained in contraction territory, with its PMI at 48.9 in June, though slightly improved from 48.7 in May. The composite index, covering both services and manufacturing, has now been below 50 for two months, indicating a sustained downturn in private sector activity. According to S&P Global, the data suggests that the UK economy contracted at a modest pace in the second quarter, with GDP likely falling by 0.1% compared to the first quarter.
Punjab Issues Advisory for Monsoon
Separately, the Punjab government issued an advisory to protect crops during the ongoing monsoon rains, urging farmers to take preventive measures against potential flooding and pest infestations. The advisory recommends draining excess water from fields, applying fungicides, and monitoring for diseases. The monsoon season, which runs from July to September, is critical for agriculture in the region.
