Election uncertainty pushes British business growth to seven-month low in June

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June’s slowdown was led by a fall in the services PMI to 51.2 from 52.9, while the smaller manufacturing sector PMI edged up to a two-year high of 51.4 from May’s 51.2

British businesses are expanding at the slowest pace since the economy was in recession last year, as some companies put big decisions on hold until after the country’s July 4 election, a survey showed on Friday.

“The slowdown in part reflects uncertainty around the business environment in the lead up to the general election, with many firms seeing a hiatus in decision making,” said Chris Williamson, chief business economist at S&P Global. Norwegian energy giant Equinor has suspended efforts to sell a stake in the giant Rosebank oil development in the North Sea due to political uncertainty.

Official retail sales data for May, released earlier on Friday, showed a strong rebound after heavy rain caused a slump in April, while separate figures showed consumer confidence rose to its highest since November 2021.

 

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