The UK’s private sector continued to grow in May albeit at a slower pace than in April, figures showed.
The headline seasonally adjusted S&P Global/CIPS Flash UK composite output index registered 53.9 in May, down from April’s 12-month high of 54.9 but still above the crucial 50.0 no-change threshold.
May data signalled another solid improvement in the #UK private sector (#PMI at 53.9; Apr: 54.9), but the rate of expansion eased from April and the divergence between the #manufacturing and #service economies widened. Read more: https://t.co/a9osXOW0Eg pic.twitter.com/qP2yOxKRWq
— S&P Global PMI™ (@SPGlobalPMI) May 23, 2023
Growth remained centred on the service sector, with travel, leisure and hospitality businesses widely commenting on resilient consumer demand.
In contrast, manufacturing firms indicated the steepest reduction in production levels for four months.
The flash UK Services PMI Index was 55.1 in May, down from 55.9 in April, while the UK manufacturing PMI fell to 46.9 in May from 47.8 in April.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “The UK economy enjoyed another month of strong growth in May, with the expansion continuing to be driven by surging post-pandemic demand in the service sector, notably from consumers and for financial services, with hospitality activities buoyed further by the Coronation.”
“The surveys are consistent with GDP rising 0.4% in the second quarter after a 0.1% rise in the first quarter.”