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UK service sector shrinks amid Iran war disruption and heatwave – business live

Economy The Guardian By Graeme Wearden 03 Jul 2026 09:37 1 min read
UK service sector shrinks amid Iran war disruption and heatwave – business live

Rolling coverage of the latest economic and financial news Today’s UK Service PMI report (which polls purchasing managers from across the sector) found there was a “sustained reduction in backlogs of work across the service economy”. This was due to weak demand, S&P Global reports, adding: This contributed to another fall in employment numbers, with the pace of job losses the sharpest since February. Many service providers noted either redundancies or the non-replacement of voluntary leavers in

Rolling coverage of the latest economic and financial news

Today’s UK Service PMI report (which polls purchasing managers from across the sector) found there was a “sustained reduction in backlogs of work across the service economy”.

This was due to weak demand, S&P Global reports, adding:

This contributed to another fall in employment numbers, with the pace of job losses the sharpest since February. Many service providers noted either redundancies or the non-replacement of voluntary leavers in response to reduced business requirements and pressure on margins from rising costs.

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