Euro area and UK economic data show uneven services sector performance

Eurostat data indicates that services production in the euro area fell by 0.3 per cent in June, following a period of growth in May. The decline was primarily driven by contractions in real estate, professional, scientific, and technical activities, as well as administrative and support services. This trend was partially offset by an 0.8 per cent increase in information and communication services. In Cyprus, the services sector showed mixed results; while professional services and transport expanded, accommodation and administrative activities weakened.

In the United Kingdom, Bank of England reports suggest a patchy economic recovery. While some manufacturing and services sectors show improvement, businesses expressed little appetite for workforce expansion, with most expecting headcount to remain flat over the next 12 months. Official data from the Office for National Statistics showed UK GDP grew by 0.4 per cent in July, following modest growth in previous months. While services expanded by 0.6 per cent over the three months to July, production and construction sectors both contracted by 0.5 per cent during that same period.