Private sector activity falls to over a two year low

The private sectors activity has plummeted to a two year low as the US President’s announced tariffs has hit exports hard.

The S&P Global flash UK composite purchasing managers’ index (PMI) showed a reading of 48.2 in April, a score above 50 shows activity is growing.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said, “The biggest concern lies in a slump in exports amid weakened global demand and rising global trade worries, but higher staffing costs have also piled pressure on companies – linked to the National Insurance and minimum wage changes that came into effect at the start of the month.

“Just as export orders are falling at the sharpest rate since May 2020, during the pandemic lockdowns, firms’ costs spiked higher to a degree not seen for over two years.

“The collapse in confidence and drop in output during April raise red flags as to the near-term economic outlook and add pressure on the Bank of England to reduce interest rates again at its May meeting.”