The United Kingdom’s private sector economy returned to growth in July, driven by increased demand linked to staycations and the FIFA World Cup, according to a purchasing managers’ index (PMI) released on Sunday. The S&P Global composite flash PMI for July rose to 52.1, up from 49.3 in June, signaling an expansion after a period of contraction in the previous month.

Both the services and manufacturing sectors recorded readings above the 50-point mark that separates growth from decline, surpassing economists’ expectations. The services PMI, which tends to dominate the UK economy, was buoyed by stronger activity in hospitality, where demand benefited from favorable weather conditions, the international football tournament, and a rise in domestic holidaymaking.

Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that the July data indicated a faster pace of economic growth at the outset of the third quarter. “UK businesses reported stronger activity in July, pointing to a faster pace of economic growth at the start of the third quarter,” he said, emphasizing the positive impact of both seasonal factors and major sporting events on business sentiment.

This uptick builds on a modest increase recorded earlier in the year, with official figures showing gross domestic product expanded by 0.1 percent in May. The combination of tourism-related spending and broader private sector activity helped offset concerns about economic stagnation after several months of sluggish growth.

While the data suggests underlying resilience in the UK economy, analysts caution that continued momentum will depend on sustaining consumer confidence and navigating ongoing global uncertainties, including inflationary pressures and geopolitical tensions. Nonetheless, the latest PMI reading offers an encouraging sign that the private sector may be regaining some traction heading into the second half of 2026.