UK Service Sector Contraction in April

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, reaching its lowest point since January 2023.

Export Conditions and Business Expectations Worsen

"The service sector's output contraction in April was significantly influenced by heightened business uncertainty and weak export conditions, with new international business falling at the fastest rate since February 2021," explained Tim Moore, Economics Director at S&P Global Market Intelligence. He further noted, "Service sector companies are preparing for prolonged global economic instability and increased recession risks, leading to a sharp decline in business expectations for the upcoming year."

Composite PMI Also Declines

The composite Purchasing Managers' Index (PMI) mirrored this downturn, decreasing from 51.5 in March to 48.5 in April, signaling broader economic challenges ahead.