Services sector in a 'fragile' recovery as jobs fears linger

BRITAIN'S services sector has defied tax increases and a drop in employment across the economy to hit a three-month high last month, figures suggest.

- By Mauricio Alencar

BRITAIN'S services sector has defied tax increases and a drop in employment across the economy to hit a three-month high last month, figures suggest.

The double whammy of Donald Trump's tariffs and Chancellor Rachel Reeves' tax rises in April lowered confidence levels among businesses while official data showed the economy contracted by as much as 0.3% in a month.

However, economists may find some comfort in S&P Global's latest flash purchasing managers' index (PMI), as companies demonstrate a degree of resilience.