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UK service sector activity slumps in one of sharpest declines for a decade

Firms hit by ‘perfect storm’ of uncertainty about Labour leadership and impact of Iran war

Business live – latest updates

Companies in the UK’s dominant services sector have reported one of the sharpest declines in business activity in a decade, according to a closely watched index.

Businesses are grappling with a “perfect storm” of domestic political uncertainty around Keir Starmer’s leadership as prime minister and the growing impact of the Iran war, leading to soaring costs, supply shortages and job cuts, the report said.

May 21, 2026 Services sector Economic growth (GDP) Business

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Services sector May 21, 2026 UK service sector activity slumps in one of sharpest declines for a decade Firms hit by ‘perfect storm’ of uncertainty about Labour leadership and impact of Iran warBusiness live – latest updatesCompanies in the UK’s dominant services sector have reported one of the sharpest declines in busi...

UK service sector activity slumps in one of sharpest declines for a decade

Firms hit by ‘perfect storm’ of uncertainty about Labour leadership and impact of Iran warBusiness live – latest updatesCompanies in the UK’s dominant services sector have reported one of the sharpest declines in busi...

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UK service sector activity slumps in one of sharpest declines for a decade

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