While the private gauge indicates a minor slowdown, it stands in contrast to official data that suggested an uptick in service activity last month. The underlying momentum remains firm, evidenced by a steady rise in new business intake that has encouraged companies to scale up their operations. For the first time since 2024, service providers have recorded back-to-back monthly employment gains, with the pace of hiring hitting a peak not seen since July 2024.

This sustained demand has shifted pricing power back to firms. After months of stagnation, service providers began raising prices in June, marking the first such increase since February. This inflationary pressure reached its highest point since May 2024, reflecting both a tightening labor market and the robust intake of new contracts across the sector.