Back to today’s briefing

Story perspectives

UK Business Activity Rises Amid Job Cuts and Inflation

6/24/2025

25 5

Summary

Story summary

In June, the UK experienced a flicker of hope as business activity edged up, with the S&P Global Composite PMI reaching 50.7. New orders surged for the first time this year, yet job cuts intensified amid rising geopolitical tensions. Meanwhile, the Bank of England held interest rates steady at 4.25%, facing scrutiny as inflation continues to outpace targets.

History

Historical Context

The 2008 global financial crisis triggered a severe recession in the UK, with GDP contracting by 4.2%. In response, the Bank of England cut interest rates to a historic low of 0.5% and initiated quantitative easing. Today, the UK faces ongoing economic challenges, including inflation and job cuts, as geopolitical tensions exacerbate vulnerabilities stemming from a decade of stagnation and austerity measures.

1 of 2

Story summary

In June, the UK experienced a flicker of hope as business activity edged up, with the S&P Global Composite PMI reaching 50.7. New orders surged for the first time this year, yet job cuts intensified amid rising geopolitical tensions. Meanwhile, the Bank of England held interest rates steady at 4.25%, facing scrutiny as inflation continues to outpace targets.

1 / 2