Service Sector Contraction

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 figure since January 2023, attributed to a decline in new business and employment.

Composite PMI Decline

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

Expert Insights

"UK service sector output entered contraction for the first time in one-and-a-half years, with heightened business uncertainty impacting order books. Export conditions were particularly weak, with new business from abroad seeing the largest drop since February 2021," stated Tim Moore, Economics Director at S&P Global Market Intelligence. He added, "Business expectations for the year ahead have sharply declined as service sector firms prepare for prolonged global economic turbulence and increased recession risks."