UK service sector confidence reached its highest level in June 2025 since before Rachel Reeves’ debut budget, according to new data from S&P Global's purchasing managers’ index (PMI). The index rose to 50.9, indicating expansion, as business leaders became more optimistic about improved sales and investment over the next six months, seeing beyond the uncertainty sparked by Donald Trump’s tariff war.
UK service sector confidence higher in June than since before autumn budget
Services sectorEconomic growth (GDP)EconomicsBusinessUKRachel ReevesAutumn budget 2024Budget
AI Summary
TL;DR: Key points with love ❤️UK service sector confidence reached its highest level in June 2025 since before Rachel Reeves’ debut budget, according to new data from S&P Global's purchasing managers’ index (PMI). The index rose to 50.9, indicating expansion, as business leaders became more optimistic about improved sales and investment over the next six months, seeing beyond the uncertainty sparked by Donald Trump’s tariff war.
- 1 1930s: US import tariffs were at their highest level since this period.
- 2 October 2024: Optimism among UK businesses fell in the wake of the Chancellor's first budget.
- 3 First three months of 2025: The UK economy expanded by 0.7%.
- 4 April 2025: The S&P Global PMI fell to a 27-month low of 49.0 due to tariff concerns.
- 5 May 2025: The S&P Global PMI rose to 50.9, indicating a recovery in the services sector.
- 6 June 4, 2025 (Wednesday): Rachel Reeves announced pledges to increase investment in road and rail projects across the regions.
- The UK economy is showing more resilience than many forecasters predicted.
- Potential for increased business investment and sales in the coming months.
- Challenges remain with prevailing demand conditions and employment, as firms continue to lay off staff.
- Rachel Reeves' pledges for road and rail projects are expected to further boost private sector optimism.
What: UK service sector confidence increased, with the S&P Global purchasing managers’ index (PMI) rising to 50.9, indicating expansion.
When: June 2025 (reflecting data from May 2025).
Where: UK.
Why: Improved confidence among clients and fewer concerns about tariffs, following Donald Trump walking back some of his more 'ruinous' tariffs, contributed to the rebound.
How: The S&P Global PMI, based on a survey of business leaders, showed an increase in optimism and expectations for improved sales and investment.