CONSUMERS are rolling back spending at pubs, bars and restaurants in response to rampant inflation whacking their budgets, revealed a closely watched survey published yesterday.

New business growth in Britain's services industry, its economic engine, slowed to its worst level in 16 months in June, according to S&P Global's purchasing managers' index (PMI).

The cooldown was attributed to "higher inflation and worries about the economic outlook le[ading] to hesitancy in relation to new orders," S&P Global said.

Despite stalling new business expansion, the services industry continues to hold up well amid the headwinds hitting the UK economy.

The final PMI for June edged higher to 54.3, up from 53.4 in May, slightly above the City's expectations.

Weakening new business activity suggests the services industry may soon struggle to keep its head above the 50 point threshold that separates growth and contraction.

(c) 2022 City A.M., source Newspaper