Service Sector Slowdown

The United Kingdom's service sector witnessed a significant 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 first contraction in one-and-a-half years, driven by a decline in new business and employment, reaching its lowest point since January 2023.

Global Economic Turbulence

"The UK service sector output contracted for the first time in 18 months, with heightened business uncertainty affecting order books. Export conditions were notably weak, with new foreign business declining the most since February 2021," explained Tim Moore, Economics Director at S&P Global Market Intelligence.

Future Outlook

Moore further added, "Business expectations for the upcoming year have sharply declined as service sector companies prepare for prolonged global economic turbulence and increased recession risks." The composite Purchasing Managers' Index (PMI) also fell from 51.5 in March to 48.5 in April, underscoring the sector's challenges.