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In June the UK services sector grew at itโ€™s fastest rate for 10 months as inflation eased and the โ€œturnaroundโ€ with consumers and businesses spending supported the industry.

The S&P Global UK services PMI survey which is closely watched by economists scored 52.8 for the month, up from 50.9 in May.

Tim Moore, economics director at S&P Global Market Intelligence, said: โ€œJune data highlighted a modest rebound in UK service sector growth, fuelled by a turnaround in domestic business and consumer spending after a soft patch during the spring.

โ€œBusiness activity expansion was slightly stronger than the earlier โ€˜flashโ€™ estimate for June and the fastest seen since August 2024.โ€

Moore added: โ€œConcerns about elevated payroll costs meant that service providers were reluctant to turn on the hiring taps.

โ€œEmployment numbers decreased for the ninth month running and at a faster pace than in May, with job shedding again often attributed to redundancies as well as the non-replacement of voluntary leavers.โ€

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