A key private sector survey indicates that the UK economy contracted for a second straight month in June, with businesses increasing layoffs.

The preliminary S&P Global UK Purchasing Managers' Index (PMI) fell to 49.4, marking a 14-month low, down from 49.7 in May. A reading below 50 signifies economic contraction.

This survey result confirms the expectations of many economists who were concerned the UK economy had stalled in the second quarter. The slowdown in the second quarter is disappointing, following the UK's position as the fastest-growing economy among the G7 in the first quarter.

Rising joblessness has become a significant challenge, with the S&P sub-index measuring employment remaining in negative territory for 21 consecutive months. In June, this index dropped to 46.8 from 47.1, a decline S&P attributes primarily to ongoing pressures from the Middle East conflict.