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Growth seen in three UK sectors in June

 

Three of the UK’s 14 sectors reported output growth in June, exclusive PMI data from Lloyds’ latest UK Sector Tracker reveals.

Lloyds
Published on: 18 July 2025
2 min read
  • Latest Lloyds UK Sector Tracker data shows that three out of 14 UK sectors reported output growth in June, while two saw new orders grow. 
  • More sectors raised their prices, as every sector continues to face cost rises.
  • Data suggests businesses are working to remain competitive amid falls in demand.

 

According to Lloyds’ data, the overall rise in the UK Composite PMI in June was driven by output growth in software and services (58.5), food and drink manufacturing (51.6) and financial services (51.3), which includes insurance providers, banks and other financial services firms. 

The number of sectors reporting a rise in new orders remained unchanged month on month at two (out of 14) in June. Demand growth was seen in software and services (60.0) and food and drink manufacturing (53.2).

A reading on the Tracker above 50.0 indicates expansion, while a reading below 50.0 indicates contraction.

Cost inflation slows, but more sectors raise prices

For a second month in a row, all 14 sectors monitored by the Tracker saw input costs rise, although the overall rate of cost inflation slowed month on month. Tourism and recreation, which includes pubs, hotels and restaurants, saw business costs rise at the sharpest rate (74.9), while chemicals manufacturers saw the slowest cost rises (52.7).

The rate at which businesses raised their prices dropped to the slowest rate since February 2021. However, 13 sectors raised their prices in June – one more than in May. Healthcare was the only sector to reduce its prices month-on-month (46.5 in June vs. 50.1 in May).

Overall workforce levels decreased for a ninth consecutive month in June, with 12 of the 14 monitored sectors reporting lower headcount than the month before (vs. 13 in May). Software services (51.9) and real estate (50.1) both reported an uplift in staff numbers.  

Our data shows that the growth indicated by the headline PMI figures is being driven by a handful of sectors. Although price rises have slowed, they remain widespread. However, businesses still aren’t passing on the full extent of their own cost increases to customers as they work to continue being competitive in a challenging demand environment.

Nikesh Sawjani Senior UK Economist at Lloyds

 

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