UK Service Sector Faces Contraction

The United Kingdom's service sector witnessed a notable slowdown in April, with the services PMI declining to 49.0 from 52.5 in March, as reported by S&P Global. This marks the sector's first contraction in one-and-a-half years, primarily due to a decrease in new business and employment levels, pushing the figure to its lowest since January 2023.

Global Economic Uncertainty Takes Its Toll

Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the impact of heightened business uncertainty on order books during April. "Export conditions were particularly weak, with new business from abroad falling to the greatest extent since February 2021," Moore stated. He also noted a sharp decline in business expectations for the year ahead, as firms brace for prolonged global economic turbulence and increased recession risks.

Composite PMI Also Declines

The composite Purchasing Managers' Index (PMI) mirrored this downturn, dropping from 51.5 in March to 48.5 in April, further underscoring the challenges faced by the UK service sector.