UK Composite PMI Slumps to 48.5 in May as Services Hit Worst Non-Covid Reading Since 2016
Updated
Updated · The Guardian · May 21
UK Composite PMI Slumps to 48.5 in May as Services Hit Worst Non-Covid Reading Since 2016
10 articles · Updated · The Guardian · May 21
48.5 — the UK’s composite PMI fell from 52.6 in April and far undershot the 51.6 forecast, signaling private-sector contraction in May.
Services, which make up about 80% of the economy, posted their weakest activity since January 2021 and the lowest since July 2016 outside the pandemic period.
S&P Global said the downturn reflected a “perfect storm” of the Iran war and domestic political uncertainty, which drove costs higher, disrupted supplies and deterred spending, hiring and investment.
Payrolls fell for a 20th straight month as service-sector job shedding accelerated, echoing official data showing 100,000 fewer payrolled employees in April after a 28,000 drop in March.
Economists said the weak PMI, alongside slower inflation at 2.8% and wage growth at 3.4%, strengthens the case for the Bank of England to keep rates at 3.75% in June.
With the economy shrinking and prices surging, is the Bank of England trapped with no good options left to fight stagflation?
As living costs soar and job security plummets, are UK households heading for a deeper crisis than official data suggests?
Is the UK's heavy reliance on imported energy its ultimate economic Achilles' heel in a volatile world?