UK Service Sector Activity Weakens in April

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 on Thursday. This decline, marking the lowest since January 2023, was primarily due to a decrease in new business and employment rates. The composite Purchasing Managers' Index (PMI) also saw a decline, falling from 51.5 in March to 48.5 in April.

Business Uncertainty and Export Challenges

"UK service sector output contracted for the first time in one-and-a-half years, with heightened business uncertainty significantly impacting order books in April. Export conditions were particularly challenging, with new international business experiencing the sharpest decline since February 2021," explained Tim Moore, Economics Director at S&P Global Market Intelligence.

Future Outlook

"Service sector companies are preparing for a prolonged period of global economic instability and increased recession risks, leading to a sharp decline in business expectations for the upcoming year," Moore added.