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\t\tThe UK looks set to return to economic growth after an April slump. \t<\/p>\n
The UK services sector expanded in June, despite tax hikes and a drop in employment across the UK economy, new figures have suggested.\u00a0<\/p>\n
The double whammy of President Trump<\/a>\u2019s tariffs and Chancellor Reeves\u2019 tax increases<\/a> in April lowered confidence levels among businesses, with official data showing the UK economy contracted by as much as 0.3 per cent in one month.\u00a0<\/p>\n But economists may find some comfort in S&P Global\u2019s latest flash purchasing managers\u2019 index (PMI) as firms demonstrate a degree of resilience.\u00a0<\/p>\n Researchers at S&P Global revealed business activity hit a three-month high in June while the flash composite index increased to 50.7 from 50.3 in May, which is above the 50-figure benchmark for no change in output.\u00a0<\/p>\n Service providers reported they are taking on more clients, which represented the first monthly rise since last November, while companies also said prices rose at their slowest pace in more than four years.\u00a0<\/p>\n Around 1,300 manufacturers and service providers said growth in orders generally came domestically as total new work from abroad decreased for the eighth consecutive month, reflecting the post-Liberation Day slump in demand and doubts over global trade.\u00a0<\/p>\n But in a more concerning sign for the UK economy, the private sector has continued to lay off staff and refrain from hiring more staff as employment fell at a faster pace than in May.\u00a0<\/p>\n \u2018Lacklustre\u2019 figures<\/p>\n S&P Global suggested employment<\/a> had now declined for nine months in a row.\u00a0<\/p>\n \t\t\t\t\tRead more<\/p>\n