UK PMI Services was finalized at 49.0 in April, down from 52.5 in March, its lowest level since January 2023. PMI Composite also dropped into contraction at 48.5, marking the first negative reading in 18 months.
S&P Global’s Tim Moore pointed to heightened business uncertainty as a major drag on activity. Export conditions were the weakest since early 2021. Rising payroll costs linked to National Insurance hikes and increased National Living Wage rates contributed to the sharpest input cost growth since mid-2023. Service providers responded with their steepest price increases in nearly two years.
Business confidence deteriorated significantly as “service sector firms braced for an extended period of global economic turbulence and heightened recession risks.” 22% of firms forecasted a decline in activity over the next 12 months—more than triple the level seen after the 2024 general election.
