New service sector orders at lowest level since 2022

The UK service sector has reported its biggest drop in new orders in almost three years for last month, adding to pressure on the Bank of England to cut interest rates tomorrow.

- Richard Partington

Sounding the alarm over a loss of momentum amid a worsening global economic backdrop, the data provider S&P Global Market Intelligence said total new work in the sector, which accounts for about 80% of the economy, eased to its slowest pace since November 2022.

The survey of 650 firms in the sector, which includes finance, IT, communications and property but excludes retail, is watched by the Bank and the government for early warning signs from the economy.

Threadneedle Street is widely expected to cut the cost of borrowing at its next policy meeting from the current level of 4.25% amid growing concerns about the strength of the economy.