UK May final services PMI 55.2 vs 55.1 prelim | Forexlive
- Prior 55.9
- Composite PMI 54.0 vs 53.9 prelim
- Prior 54.9
Little change to the initial estimates as UK services activity continues to keep more robust in May. A strong rise in output and new work is helping to underpin the expansion. S&P Global notes that:
“Service sector businesses have experienced strong growth
so far in the second quarter of 2023, fuelled by resilient
demand for consumer and technology services, combined
with a post-pandemic tailwind as households switched from
spending on goods to services. Rising export sales were also
reported in May, reflecting increased international visitor
numbers and improving demand for business services from
clients based in the US and Europe.
“Job creation was maintained in May as service providers
recruited additional staff in support of rising business
requirements. Some firms noted a gradual improvement in
candidate availability, likely reflecting a slowdown in hiring
from the levels seen last year.
“Intense wage pressures continued across the service
economy, despite a moderation in employment growth.
Higher salary payments more than offset lower fuel costs,
which meant that overall input price inflation edged up to its
strongest for three months in May. Average prices charged
by service sector companies nonetheless increased at the
second-weakest pace since August 2021 amid some reports
of greater price resistance among clients.”