Service Sector Slowdown

The United Kingdom's service sector has shown signs of weakening in April, with the services PMI dropping to 49.0 from 52.5 in March, as reported by S&P Global. This marks the first contraction in one-and-a-half years, driven by a decline in new business and employment, reaching its lowest point since January 2023.

Global Economic Turbulence Impacts UK

Tim Moore, S&P Global Market Intelligence Economics Director, highlighted the impact of heightened business uncertainty and weak export conditions. "New business from abroad saw the most significant drop since February 2021," Moore stated, pointing to the challenges faced by the service sector.

Looking Ahead

With business expectations for the year ahead declining sharply, service sector firms are preparing for prolonged global economic turbulence and increased recession risks, underscoring the fragile state of the UK's economy.