6:50 am, May 23, 2025
Downturn across UK firms stretches into May despite tariffs respite
A slump across the UK’s private sector continued into the first weeks of May, though at a slower rate than in April, amid improving confidence following the easing of US trade tariffs.
The S&P Global flash UK composite purchasing managers’ index (PMI) reported a reading of 49.4 in May, up from 48.5 in April.
The flash figures are based on preliminary data. Any score above 50.0 indicates activity is growing while any score below means it is contracting.
Pressure on Chancellor after Government borrowing jumps to £20.2bn
UK Government borrowing rose by more than expected to £20.2 billion last month, mounting further pressure on Chancellor Rachel Reeves to meet her fiscal rules.
The Office for National Statistics (ONS) said public sector net borrowing rose to its fourth-highest April figure on record after increasing £1 billion year-on-year.
The state borrowing figure reflects the difference between Government spending and its income, largely through tax receipts.
Dacia Bigster scores just three stars in latest round of Euro NCAP safety tests
The Dacia Bigster has achieved just three stars in the latest round of Euro NCAP safety tests.
The Bigster is Dacia’s largest SUV and scored just 57% overall for its driver safety assistance systems. It was rated poorly on lane support for motorcyclists and door prevention for cyclists.
The biggest setback was that the car does not come with an occupant detection feature in the back seats to let the driver know if passengers have got their seatbelts fastened.
The markets
The FTSE 100 slumped on Thursday after new data showed UK Government borrowing surged higher than expected last month.
London’s blue-chip index ended the day down 47.20 points to finish the day at 8,739.26, a 0.54% fall.
In Europe, Germany’s Dax fell 0.47% and France’s Cac 40 fell 0.58%.
Thursday on Car Dealer
Electric city cars are a ‘no brainer’ says Fiat boss as he backs segment to drive EV sales
Fiat’s European boss Gaetano Thorel says electric city cars are a ‘no brainer’ for urban drivers, thanks to manageable range and easy home charging. He believes models like the 500e and Grande Panda Electric should drive Europe’s EV transition.
Letchworth Renault showroom becomes first UK dealer to showcase French firm’s new look
Renault has opened a new dealership in Letchworth Garden City, showcasing its latest ‘R Store’ retail design for the first time in the UK. Operated by Letchworth Autoways, the site also includes a new Dacia showroom and used car centre.
Checking out: How EV battery health checker is helping car dealers avoid tough to shift stock
Car dealers risk being stuck with hard-to-sell EVs if they don’t check battery health during part-exchange. Expert Oliver Phillpott says testing helps avoid costly mistakes and reassures buyers. Though rare, anomalies with poor batteries can seriously impact resale value.
JLR’s Steve Marsh appointed industry co-chair of influential Automotive Council
JLR’s Steve Marsh has been appointed industry co-chair of the Automotive Council alongside MP Sarah Jones. Marsh brings nearly 40 years of experience to the role, aiming to help the UK auto industry stay globally competitive and attract investment.
Marshall Motor Group announces Omoda and Jaecoo will join its range of brands
Marshall Motor Group is launching its first Omoda and Jaecoo dealership in Nottingham, taking over its former Volvo site on Valley Road. The move strengthens its partnership with Chery-owned brands, expanding their UK presence and focus on innovation.
Nissan employee retires after 32 years with the brand and 24 at Fish Brothers
After 32 years with Nissan and 24 at Fish Brothers, Graham Walker has retired. Known for his dedication and teamwork alongside parts manager Paul Crepaz, Graham played a key role in establishing the Swindon dealership’s parts operation.
Starmer signs deal with Mauritius to hand over Chagos Islands
Sir Keir Starmer has signed an agreement to hand over sovereignty of the Chagos Islands to Mauritius in a deal that will cost £101m per year.
The deal involves leasing back a crucial military base on Diego Garcia, the largest of the Chagos Islands, for 99 years and comes after a last-minute legal challenge.
Speaking from the UK’s military headquarters, the Prime Minister said the base is ‘one of the most significant contributions that we make to our security relationship with the United States’.
Chemical castration of sex offenders to be piloted in 20 prisons
A total of 20 prisons are to pilot the chemical castration of sex offenders, the Justice Secretary has said.
The Government is exploring whether to enforce the chemical castration on offenders as mandatory, Shabana Mahmood told MPs, after recommendations from the independent sentencing review to explore its use further to reduce the risk of reoffending.
The review led by former justice secretary David Gauke recommended reforms to overhaul the prisons system and make sure there is space to jail the most dangerous offenders after a string of emergency measures to deal with the capacity crisis.
Weather outlook…
Today is expected to bring a mix of sun and clouds, with temperatures ranging from 16°C to 19°C.
Most regions will remain dry, though light showers are possible in some areas. Scotland may see rain and cooler temperatures between 16°C and 18°C.
Overall, anticipate a mild and breezy day across the country.
