Businesses in the UK private sector posted a sharp decline in activity in May as the current cost of living crisis and the war in Ukraine hampered customer demand.
- The S&P Global/CIPS Composite’s purchasing managers index (PMI) came in at 51.8 during the month, down from 58.2 in April. Any scores above 50 indicate growth.
- The month-on-month loss of momentum in May was also the fourth-largest on record, exceeding anything level reported prior to the COVID-19 pandemic.
- Operating expenses also reported the fastest jump since the index started in January 1998, attributable to a rapid acceleration in input cost inflation across the service economy.
- Services providers reported the greatest loss of growth momentum in May at 51.8, down from 58.9 the prior month.
In the manufacturing sector, UK output plunged from 54.3 to 51.8, with the recent increase in production volumes the joint-weakest since October 2021.
FTSE 100 down -0.0073%, GBP USD down -0.68%
Source: S&P Global.
