Britain's services sector, which accounts for around 80% of the UK economy, contracted at its fastest pace since January 2023, according to the latest S&P Global/CIPS Purchasing Managers' Index (PMI). The slowdown comes despite official figures showing the economy returned to modest growth in May, reinforcing concerns that the UK's recovery remains fragile.
For millions of Britons, the slowdown is more than an economic indicator. A weaker services sector can mean slower hiring, reduced business investment, weaker wage growth and more cautious consumer spending.
