Service Sector Slowdown

The United Kingdom's service sector has shown signs of contraction in April, with the services PMI dropping to 49.0 from 52.5 in March, as reported by S&P Global. This marks the lowest figure since January 2023, attributed to a decline in new business and employment rates. The composite Purchasing Managers' Index (PMI) also saw a decrease, falling from 51.5 in March to 48.5 in April.

Expert Insights

"UK service sector output has entered contraction for the first time in eighteen months, with heightened business uncertainty significantly impacting order books during April. Export conditions were notably weak, with new international business declining the most since February 2021," explained Tim Moore, Economics Director at S&P Global Market Intelligence. He further added, "Service sector companies are preparing for a prolonged period of global economic instability and increased recession risks, leading to a sharp decline in business expectations for the upcoming year."