UK services sector confidence at highest level since October

Bosses in the UK's services sector were more optimistic last month than they had been since before Rachel Reeves's debut budget, according to new data, as they began to see beyond the uncertainty sparked by Donald Trump's tariff war.

- Lisa O'Carroll

A survey of business leaders showed many were looking forward to improved sales and investment over the next six months, despite an increase in US import tariffs to their highest level since the 1930s.

The S&P Global purchasing managers' index (PMI) rose from April's 27-month low of 49.0 to 50.9. Above 50 indicates a period of expansion.

Services companies have been unaffected directly by tariffs imposed by the White House, which have so far been levied on goods such as steel and cars. But they have suffered from the dampened effect on global consumer and business confidence.

Tim Moore, an economics director at S&P Global, said the services sector, which represents about three-quarters of the UK's business activity, had "regained its poise" in May.