UK Services Sector Sees Slight Rebound in May
(MENAFN) The British services sector experienced a modest rebound in May, recovering from April’s record-low performance, according to figures released Wednesday by S&P Global.
The latest S&P Global UK Services Purchasing Managers Business Activity Index rose to 50.9 in May, edging up from April’s 27-month low of 49. Despite this uptick, the increase was minimal and remained far below the long-term average for the survey, the firm noted.
Service providers linked the slight improvement in business activity primarily to renewed optimism following the sharp downturn caused by U.S. tariffs in April. Additional drivers included steady consumer confidence, new marketing efforts, and competitive pricing tactics.
"Output growth expectations for the year ahead also rebounded after April's tariff-related slump. Optimism reached its highest level since October 2024, which reflected forthcoming business investment plans alongside hopes of a turnaround in sales pipelines and improving domestic economic prospects," said Tim Moore, economics director at S&P Global Market Intelligence.
However, the data highlighted ongoing declines in new order volumes throughout the service sector, attributed to weak demand both domestically and internationally, despite increased client confidence after the easing of U.S. tariffs.
The sector has also seen continuous job cuts for eight consecutive months, pressured by rising payroll expenses, S&P Global added.
In addition, Wednesday’s release showed the S&P Global UK PMI Composite Output Index climbed to 50.3 in May from 48.5 in April. While this marked an improvement, it remained the second-lowest reading since October 2023, as rising service sector output contrasted sharply with a pronounced drop in manufacturing production.
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