Tim Moore, economic director of S&P Global Market Intelligence, commented on the UK services PMI

The weakening momentum shown by service providers in July suggested the UK economy was at best flat in the coming months as rising borrowing costs took a bigger toll on consumer spending and business confidence.

Services firms posted their weakest job growth in six months, while job creation fell as some firms paused hiring in response to weaker market conditions.

Anecdotal reports that subdued demand led to more competitive prices and lower fuel costs contributed to a slowdown in output charge inflation to the second-lowest since August 2021.

However, with input cost inflation little changed from its average in the second quarter of 2023, pressure on business spending did not ease.