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Evening Standard
Evening Standard
Business
Henry Saker-Clark

UK services sector shrinks for first time in 18 months amid tariff worries

UK inflation is expected to remain above the 2% target when official figures for August are released on Wednesday amid a resurgence in price pressures across the key services sector (Alamy/PA) -

The UK’s services sector shrank last month for the first time since October 2023 as concerns over trade tensions weighed on firms, according to new figures.

Service sector companies reported their weakest levels of new work from overseas for more than four years as recent US tariff plans caused caution globally across the sector.

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