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UK services firms provide relief to Reeves before tough budget update

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          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Businesses in Britain's huge services sector reported a pickup this month, according to a survey that offered some comfort to finance minister Rachel Reeves ahead of a challenging speech on the economy and the public finances this week.
The article from MSN discusses how UK services firms have provided some relief to Chancellor Rachel Reeves ahead of a challenging budget update. Despite a general slowdown in the UK economy, the services sector, which is a significant part of the UK's economic output, showed unexpected resilience. According to the S&P Global/CIPS UK Services PMI, the sector's activity contracted at the slowest pace in six months in June, with the PMI rising to 52.1 from 51.2 in May, indicating growth. This slight uptick was driven by a modest increase in new business and a stabilization in employment levels. However, the article also notes ongoing challenges such as high inflation, rising interest rates, and a cautious approach to spending by businesses and consumers. These factors contribute to a complex economic environment that Reeves must navigate in her upcoming budget statement, where she will need to balance economic growth with fiscal responsibility.

Read the Full Reuters Article at:
[ https://www.msn.com/en-gb/money/other/uk-services-firms-provide-relief-to-reeves-before-tough-budget-update/ar-AA1Bx1Ng ]