UK services PMI falls to 49.3 in May
The UK services sector contracted in May, with the final services PMI reading at 49.3. This marks a decline from the prior month’s 52.7.
The decrease in business activity is attributed to subdued demand and rising input costs. The final composite PMI also fell to 49.7, down from 52.6 in the previous month.
Input prices rose sharply, driven by higher fuel prices and transportation bills. Despite a slight easing in input price inflation, it remains higher than at any other time since the energy crisis in 2022.