UK services PMI has fallen for two straight months, and Starmer’s mess still hasn’t been cleaned up—meanwhile, the market is already betting on the next prime minister. With geopolitical conflicts plus political uncertainty, this one-two punch is hitting hard.

According to Cointelegraph, due to the ongoing impact of the Iran war, the UK's dominant service sector activity shrank for the second consecutive month in June, posting the largest decline since early 2023. The UK June services PMI final reading fell from 49.3 in May to 48.8, declining for the second straight month, the lowest level since January 2023. The data also came in below the preliminary estimate of 48.7. A reading below 50 indicates contraction in the services sector. Overall, the pace of contraction in new business was the fastest since November 2022. Businesses said they are worried about who will succeed UK Prime Minister Starmer and his fiscal policies, as well as global inflationary pressures.