Financial News: UK Service Sector Growth Improves

UK Service Sector Growth Improves

05/06/2026 - 08:51:00 (RTTNews)

(RTTNews) - The UK service sector growth accelerated in April despite headwinds arising from the Middle East conflict, final survey data from S&P Global showed Wednesday.

The services Purchasing Managers' Index rose to 52.7 in April from March's 11-month low of 50.5. The flash reading was 52.0.

The index has remained above the 50.0 no-change mark in each month since May 2025, suggesting expansion throughout the period.

"April data signalled a modest recovery in UK service sector output growth after the considerable loss of momentum seen in March," S&P Global Market Intelligence Economics Director Tim Moore said.

"However, this improvement could easily prove short-lived as new business intakes remained subdued in comparison to the start of 2026," Moore added.

Total new work was broadly unchanged in April and backlogs of work decreased from March. There was another fall in employment across the service economy. Input price inflation hit the highest since November 2022 due to higher fuel prices and elevated wage pressures. Prices charged by service providers surged to the highest since January 2023.

Optimism among service providers edged up from March's nine-month low but remained subdued in comparison to the long-run average.

The overall private sector expanded at a faster pace in April. The final composite output index registered 52.6, up from 50.3 in March. The score suggested higher levels of manufacturing output and service sector activity in April.

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