Service Sector Slowdown in April

The United Kingdom's service sector saw a significant downturn 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.

Export Conditions and Business Expectations Worsen

"UK service sector output contracted as heightened business uncertainty impacted order books. Export conditions were notably weak, with new international business falling the most since February 2021," stated Tim Moore, Economics Director at S&P Global Market Intelligence. He added, "Business outlooks for the upcoming year have deteriorated sharply, with firms preparing for prolonged global economic instability and increased recession risks."

Composite PMI Reflects Broad Economic Challenges

The composite Purchasing Managers' Index (PMI) also declined, from 51.5 in March to 48.5 in April, underscoring the broader economic challenges facing the UK.