A. Housing Boom
B. Services Sector Contraction
C. Tourism Decline
D. Banking Crisis

• UK service-sector activity fell below the growth threshold for the first time since 2025.
• Rising energy and transportation costs linked to Middle East tensions increased business expenses.
• Business confidence weakened and hiring continued to decline.
• The services sector is the largest contributor to the UK economy.
Why It Matters
• A slowdown in services can affect employment, investment, and economic growth across Britain.