![\"Andy](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/07\/andyburnham.jpeg\")
\t\tAndy Burnham is set to become the Prime Minister. \t<\/p>\n\t\t\tFriday 03 July 2026 10:41 am\n\t\t\t<\/p>\n
\t\tAndy Burnham is set to become the Prime Minister. \t<\/p>\n
A World Cup<\/a> boost failed to drag the UK\u2019s services sector to growth last month after it recorded its fastest rate of decline in three-and-a-half years as businesses braced for the Andy Burnham coronation.<\/p>\n The latest Purchasing Managers Index (PMI<\/a>) from S&P Global showed a reading of 48.8 in June, falling from 49.3 in May.\u00a0<\/p>\n It remained below the neutral 50.0 point to indicate whether a sector is growing.<\/p>\n \u201cStrong cost pressures, lacklustre demand and business uncertainties arising from the Middle East<\/a> conflict were the most prominent themes highlighted by service sector firms in June,\u201d Tim Moore, economics director at S&P Global Market said.\u00a0<\/p>\n He added these factors had led to \u201cfragile investment sentiment\u201d and \u201celevated risk aversion\u201d whilst consumers faced \u201csqueezed consumer budgets\u201d.<\/p>\n The PMI reported some consumer-facing firms were hit by the late-June heatwave that left a dent in footfall. Though hospitality enjoyed a boost to demand on the back of the FIFA World Cup.<\/p>\n Average prices were recorded to have sharply increased in June, though at the least marked extent since February. Businesses pointed to intense competition and subdued demand limiting their ability to pass on higher costs.<\/p>\n Job losses continue in services sector<\/p>\n The pace of job losses<\/a> across the sector also picked up, falling at the sharpest rate since February.<\/p>\n Moore said services sector business optimism had \u201cimproved\u201d since May but remained \u201cmuch softer\u201d than the beginning of the year.<\/p>\n \u201cThe marginal uplift in confidence was supported by hopes of a durable US-Iran ceasefire agreement and positivity towards business development plans,\u201d he added.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\t\u2018Course correction\u2019: UK economy to contract as \u2018energy shock catches up\u2019<\/a><\/p>\n \u201cHowever, many firms noted worries about broader UK economic prospect.\u201d<\/p>\n Business leaders across the UK are bracing for a period of uncertainty with Andy Burnham set to take the keys to Downing Street in the coming weeks.<\/p>\n One of the first tasks Burnham will be faced with is finding \u00a34.7bn to fund Sir Keir Starmer\u2019s defence investment plan that the outgoing Prime Minister released in one of his final acts.<\/p>\n