Service Sector Contraction Marks First in 18 Months

The United Kingdom's service sector has hit a rough patch, with the services PMI dropping to 49.0 in April 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 levels. The composite PMI also saw a decrease, falling to 48.5 from 51.5 in the previous month.

Global Economic Turbulence Takes Its Toll

Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the impact of heightened business uncertainty on the sector. "Export conditions were notably weak, with new international business declining at the fastest rate since February 2021," Moore stated. He also pointed out that businesses are preparing for prolonged global economic instability, with recession risks looming large.