Service Sector Slowdown

The United Kingdom's service sector witnessed a notable slowdown 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 level since January 2023, attributed to declines in new business and employment.

Composite PMI Decline

The composite Purchasing Managers' Index (PMI) also saw a decrease, falling from 51.5 in March to 48.5 in April, signaling a broader economic slowdown.

Expert Insights

"UK service sector output contracted for the first time in one-and-a-half years, with heightened business uncertainty impacting order books. Export conditions were notably weak, with new international business declining the most since February 2021," stated Tim Moore, Economics Director at S&P Global Market Intelligence.

Future Outlook

Moore added, "Business expectations for the upcoming year have significantly dropped as service sector firms prepare for prolonged global economic instability and increased recession risks."