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UK service sector activity moved close to stagnation in June, data from IHS Markit showed Wednesday.
The IHS Markit/ Chartered Institute of Procurement & Supply services Purchasing Managers' Index fell to 50.2 in June from 51.0 in May. This was the lowest reading for three months.
Economists had forecast the score to remain unchanged at 51.0.
The reading was only fractionally above the 50.0 no-change mark and therefore signaled that business activity was close to stagnation in June, Markit said.
The latest survey also revealed subdued client demand and a further reduction in work-in-hand. Nonetheless, staffing numbers picked up at the fastest pace since August 2017.
Service providers remained optimistic overall about their growth prospects for the year ahead.
The all sector output index fell to 49.2 in June from 50.7 in May. The indicator signaled a reduction in overall private sector business activity for the first time in 35 months.
