The S&P Global UK Services PMI was revised higher to 49.3 in May 2026 from a flash estimate of 47.9, but down from April's 52.7. The data signaled the first downturn since April last year, as new orders fell for the third month, amid persistently subdued domestic and overseas demand. Hospitality and transport cited weaker discretionary spending and higher input costs, while professional services reported softer demand due to rising client risk aversion. Service providers responded by cutting payrolls sharply, with the pace of job shedding the strongest since February. Input cost inflation remained elevated, easing only slightly from April’s 41-month high, driven by higher energy, fuel and transport bills as well as rising wages and technology costs. Output price inflation remained elevated, though it eased from April’s 39-month peak as firms passed on higher input costs. Business expectations for the year ahead fell to their weakest since April 2025.