UK Services Sector Now On A Slow‑Mo Slide
In May, the UK’s services sector has taken a bit of a breather. The S&P Global UK Services PMI slipped to 52.9 from 55.0 the previous month. A number over 50 still signals growth, but it’s a gentle wobble rather than a full‑throttle surge.
Why A Slowed Price Garden Is Actually a Good Harvest
- Joe Hayes, principal economist at S&P Global Market Intelligence, calls the May PMI “another decent rate of expansion.” He points out that paired with a manufacturing survey, the two PMIs hint at GDP growth of about 0.3% in the second quarter.
- Beside the numbers, Hayes mentions, “Price measures are the real eye‑opener: the Bank of England might consider cutting rates this month.” With inflation falling to its lowest in over three years, this could be a green light for easing money supply.
- Rob Wood, chief UK economist at Pantheon Macroeconomics, flips the script: “The PMI still suggests robust growth, even if it dipped in May.” He highlights that the massive inflation spike seen in April was likely a “flash in the pan,” not a new trend.
What This Means for You
In plain English: the services sector is still moving forward, but at a slower pace. Prices are cooling, giving the Bank of England a lever to possibly lower rates soon. If you’re watching the economy, keep an eye on those inflation stripes—only the wavy ones are worth the hype.
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