FX.co ★ UK Business Activity Contracts

The S&P Global UK Composite PMI experienced a downturn, dropping to 48.5 in April 2025 from 51.5 in March, having been slightly revised upwards from an initial flash reading of 48.2. However, it still fell significantly short of the market's initial expectations of 50.4. This marks the first contraction in British economic activity since October 2023. The decline was observed across both manufacturing, which registered at 45.4 compared to 44.9 in March, and the services sector, which fell from 52.5 to 49. The latter's contraction is notable as it is the first in 17 months, defying earlier anticipation of continued growth. New business intake at the aggregate level dropped for the fourth consecutive month, as service providers reported weakened client confidence stemming from disruptions in financial markets and US-imposed tariffs. Additionally, employment levels declined as some firms chose not to replace employees, with reduced business demand exacerbating the challenges posed by rising wages and National Insurance contributions. Looking ahead, business confidence has reached its lowest point since 2022.