July 3 Reuters Growth across Britain39;s services companies slowed by less than first thought in June but it still ebbed to a sevenmonth low, according to a survey on Wednesday that pointed to modest economic growth momentum for the incoming government.

The SP Global UK Services Purchasing Managers Index fell in June to 52.1 from 52.9 in May, its lowest reading since November but revised up from a preliminary estimate of 51.2.

Data provider SP Global linked the slowdown to companies taking a waitandsee approach to the outcome of Britain39;s July 4 national election. Opinion polls show the opposition Labour Party is set to win, possibly with a recordbreaking majority.

We are seeing some evidence of a pregeneral election seizeup across the UK services economy, said Joe Hayes, principal economist at SP Global Market Intelligence.

The economy looked on course for another quarter of growth albeit probably slower than the 0.7 expansion registered in the three months to March, Hayes said.

Costs paid by services companies, watched by the Bank of England as a gauge of inflation pressure, fell to their lowest level since February 2021 something that could give the central bank more confidence to cut interest rates in the coming months.

The direction of travel here is encouraging for the Bank of England, but our survey39;s gauge of prices charged actually rose on the month as some companies noted their pricing power was strong enough to raise their fees, Hayes said.

The…