UK service providers experienced a marginal downturn in business activity during April, thereby ending a 17-month period of expansion. This largely reflected a renewed downturn in order books.
Export sales were particularly subdued, with total new work from abroad decreasing at the fastest pace since February 2021. Survey respondents widely commented on risk aversion and delayed spending decisions among clients in response to rising global economic uncertainty.
At 49.0 in April, down from 52.5 in March, the headline seasonally adjusted S&P Global UK Services PMI Business Activity Index was the lowest since January 2023. The latest reading signalled a marginal decline in overall output, which contrasted with modest growth in the first quarter of 2025.
The seasonally adjusted S&P Global UK PMI Composite Output Index registered 48.5 in April, down from 51.5 in March and below the 50.0 no-change value for the first time in one-and-a-half years. That said, the latest reading signalled only a modest pace of contraction.
Subdued order books continued to weigh on business activity, with total new work falling at the sharpest rate since November 2022. This was driven by a steep and accelerated reduction in export sales.
Input price inflation meanwhile hit a 26-month high in April, largely reflecting the impact of rising payroll costs (higher staff wages and National Insurance contributions).