The S&P Global UK Services PMI was revised slightly higher to 50.9 in May 2025 from a preliminary of 50.2, and above April's reading of 49. The latest figure signaled a tepid return to growth following a contraction in April, amid receding concerns about US tariffs. Prevailing demand conditions nonetheless remained challenging, as total new work dropped for the fourth time in five months, despite export sales remaining almost unchanged. Employment has declined for eight straight months, but the latest drop was the slowest since November 2024, mainly reflecting a negative impact on hiring plans from rising payroll costs. In terms of prices, input inflation eased slightly since April but remained near its highest levels since summer 2023. More positively, output growth expectations rebounded after April’s tariff-related slump, reaching their highest level since October 2024, driven by planned business investments, hopes for a sales turnaround, and improving domestic economic prospects.