UK Business Activity Contracts in April

According to a preliminary report by S&P Global, the UK's private sector has entered contraction territory this April. The composite Purchasing Managers' Index (PMI) witnessed a significant drop to 48.2 from 51.5 in March, marking the lowest point since November 2022.

Sector-Specific Declines

The manufacturing sector wasn't spared, with its PMI falling by 1.3 points to 44, a 20-month low. Similarly, the services sector saw a decline of 3.6 points, bringing its PMI to 48.9, the lowest in 27 months.

Underlying Concerns

"The slump in exports due to weakened global demand and escalating trade tensions is alarming," stated Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. He also highlighted the burden of increasing staffing costs on companies. "The dramatic loss of confidence and output in April signals a worrying near-term economic outlook and intensifies calls for the Bank of England to consider interest rate cuts in May."