UK Service Sector Activity Shows Signs of Strain in April

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

Export Conditions and Business Expectations Worsen

Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the challenges: "The UK service sector output contracted for the first time in 18 months, with heightened business uncertainty affecting order books. Export conditions were particularly weak, with new international business falling at the sharpest rate since February 2021."

Moore added, "Business outlook for the upcoming year has significantly deteriorated, as service sector companies prepare for prolonged global economic instability and increased recession risks."