Key facts
- UK services sector activity contracted in May.
- This is the first contraction since April 2025.
- The S&P Global PMI for services fell to 49.3.
- Businesses reported increased input costs.
- Hiring contracted for the 20th consecutive month.
The UK services sector experienced a contraction in activity in May, as indicated by the S&P Global Purchasing Managers' Index falling to 49.3. This marks the first decline in output for the sector since April 2025. Businesses cited a significant rise in input costs, which led to accelerated price increases. Additionally, hiring continued to contract for the 20th consecutive month, reflecting a challenging economic environment.