UK service sector activity slumps in one of sharpest declines for a decade
The UK services sector has experienced a significant decline in activity, marking one of the sharpest downturns in a decade. This slump is attributed to a combination of political uncertainty regarding Labour leadership and the ongoing Iran war, which has led to increased costs and job cuts. The S&P Global purchasing managers' index reported a drop in business activity, indicating potential negative impacts on GDP growth.
- ▪The services sector accounts for about 80% of the UK economy.
- ▪The S&P Global purchasing managers' index reported a score of 48.5 for May, indicating contraction in business activity.
- ▪Private sector payroll numbers have fallen for the 20th consecutive month, reflecting ongoing job shedding in the services sector.
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The services sector, which includes hospitality and retail, accounts for about 80% of the UK economy. Photograph: Murdo MacLeod/The GuardianView image in fullscreenThe services sector, which includes hospitality and retail, accounts for about 80% of the UK economy. Photograph: Murdo MacLeod/The GuardianServices sectorUK service sector activity slumps in one of sharpest declines for a decadeFirms hit by ‘perfect storm’ of uncertainty about Labour leadership and impact of Iran war Business live – latest updates Tom KnowlesThu 21 May 2026 07.55 EDTLast modified on Thu 21 May 2026 07.59 EDTSharePrefer the Guardian on GoogleCompanies in the UK’s dominant services sector have reported one of the sharpest declines in business activity in a decade, according to a closely watched index.Businesses…
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