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

Economy The Guardian By Tom Knowles 21 May 2026 11:55 1 min read
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 shortage

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.

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