UK May flash services PMI 55.1 vs. 55.5 expected

• Before 55.9
• Manufacturing PMI 46.9 vs. 48.0 expected
• Before 47.8
• Composite PMI 53.9 vs. 54.6 expected
• Before 54.9

Similar to the Eurozone economy, there is also a contrast in the UK economy, with manufacturing conditions remaining softer while services activity remains stronger. All in all, this points to a slight slowdown in growth, but at least it continues to put fears of a recession to rest. S&P Global notes that:

“The UK economy enjoyed another month of strong growth in May, with the expansion continuing to be driven by strong post-pandemic demand in the services sector, notably from consumers and financial services, business hotel companies still boosted by the coronation.Surveys are consistent with GDP rising 0.4% in the second quarter after rising 0.1% in the first quarter.

“However, this growth spurt brings further inflationary pressures as service providers struggle to keep up with demand and therefore not only offer higher wages to attract staff, but also find themselves able to charge more for their services. “It’s a different story in manufacturing, where spending is being diverted from goods to services, and many companies are also cutting inventories, compounding the slowdown in demand and dragging down both output and consumer prices. decrease.

“The UK therefore sees a tale of two economies, with the divergence between manufacturing and services posing challenges for policy makers. However, it is the much wider service sector that will usually dictate policy, meaning these survey results are nothing more than hawks in suggesting the bank of england

bank of england

The Bank of England (BoE) acts as the UK’s central bank and is one of the main drivers of monetary policy in Europe. As one of the oldest central banks in the world and established in 1694, the BoE is owned by the British government. Its central mandate is to maintain and target interest rates while using other tools to help stimulate or contract the economy. Additionally, the BoE is responsible for producing UK banknotes as well as overseeing key bank payments sy

The Bank of England (BoE) acts as the UK’s central bank and is one of the main drivers of monetary policy in Europe. As one of the oldest central banks in the world and established in 1694, the BoE is owned by the British government. Its central mandate is to maintain and target interest rates while using other tools to help stimulate or contract the economy. Additionally, the BoE is responsible for producing UK banknotes as well as overseeing key bank payments sy
Read this term still has work to do to quell stubbornly high inflationary pressures in the service economy.