May flash Services PMI at 47.9 signals contraction, missing forecasts of 51.8 and weighing on GBP.
The UK’s flash Services PMI dropped to 47.9 in May, below the 50 threshold that indicates contraction. The reading missed expectations of 51.8 and marked the first decline since January, driven by falling output and rising political uncertainty.
April’s Services PMI stood at 52.7, while the Composite PMI fell to 48.5 from 52.6. Economists had anticipated a modest expansion to 51.7. Manufacturing PMI held steady at 53.7, slightly above the forecast of 53.0.
GBP/USD showed limited reaction, trading flat near 1.3435, as broader USD strength offset domestic data concerns.