Back to today’s briefing

Story perspectives

UK Services Sector Shrinks, Stagflation Fears Rise

5/8/2025

43 7

Summary

Story summary

The UK economy is showing alarming signs as the services sector shrank for the first time since October 2023, with the S&P Global services PMI falling to 49.0. Rising global tensions and US tariff plans are fueling fears of stagflation, as high inflation and dwindling business confidence challenge the Bank of England's interest rate strategies.

1 of 1

Story summary

The UK economy is showing alarming signs as the services sector shrank for the first time since October 2023, with the S&P Global services PMI falling to 49.0. Rising global tensions and US tariff plans are fueling fears of stagflation, as high inflation and dwindling business confidence challenge the Bank of England's interest rate strategies.