Britain’s dominant services sector returned to growth last month as new orders picked up, according to a survey by ​S&P Global that showed expectations for activity in the ‌next 12 months were the highest since before the start of the Iran war in February.

The S&P Global UK Services Purchasing Managers’ Index (PMI), published this week, ​rose to 52.1 in July from 48.8 in June, its first ​growth since April and above an earlier provisional or flash ⁠reading of 51.8.

The upward revision also lifted the composite PMI, ​which includes the smaller manufacturing industry, to 52.2 from 49.3, taking it above the ​50 mark which divides growth from contraction for the first time since April.

  • S&P Global said the index of total new work among services firms rose to ​50.8 in July from 47.6, the strongest since February, ending ​a four-month period of decline since the Iran war started
  • New export orders in the sector decreased ‌for ⁠the fifth month in a row but at the mildest pace of that run
  • Services firms reported the weakest increase in input costs since February as a ceasefire in the Iran war pushed down oil ​and gas prices
  • Prices ​charged rose at ⁠the slowest rate in five months
  • The survey’s employment gauge dropped for the 22nd consecutive month, equalling a ​run seen during the global financial crisis almost ​two decades ⁠ago although it was the softest pace of decline since October 2025
  • Business confidence was the highest since February
  • “Stronger growth projections for the ⁠year ​ahead partly reflected hopes of de-escalating Middle ​East tensions and recent signs of easing inflationary pressures,” said Tim Moore, economics director ​at S&P Global Market Intelligence.