The S&P Global UK Services PMI increased to 52.1 in July 2026, revised up from the preliminary 51.8 and recovering from 48.8 in June, confirming a return to modest expansion following two months of contraction. New work increased for the first time since February, amid reports of greater consumer spending and strong demand for technology services. New business from overseas markets decreased for the fifth month running, but at the slowest pace seen over this period. Elevated geopolitical uncertainties linked to the Middle East conflict were still reported as a growth headwind. Meanwhile, input price inflation eased for a third straight month to its lowest level since February, helped by lower fuel and gas costs. The rate of output inflation moderated to a five-month low and was much softer than April's recent peak.