UK private sector activity contracted for the second month in a row in June, as sustained weakness in the services sector overshadowed a further, albeit temporary, boost to manufacturing output. Overall new business volumes declined at the fastest rate in 14 months, leading to a steeper drop in backlogs of work and a trimming of headcounts. Input prices continued to rise sharply as businesses faced a litany of inflation drivers, including higher commodity prices, elevated transport costs and IT equipment surcharges. That said, the overall rate of inflation moderated further from April's 41-month high, leading to a ... (full story)