Private sector activity in the United Kingdom softened in May led by a drop in manufacturing production, according to a report by S&P Global on Monday. The composite Purchasing Managers' Index (PMI) declined to 54 from 54.9 in April. The services PMI landed at 55.2 in May, compared to 55.9 in April.
The report said the fall in manufacturing output was the steepest since January, with new order intakes and employment numbers down in the sector but increasing in the service industry. The rise of cost burdens was at its slowest since March 2021, reflecting a decline in purchase prices in the manufacturing sector for the first time in three and a half years.
"Prices charged by service providers continued to rise sharply in May. That said, the rate of inflation eased to its second-lowest since August 2021. Some businesses noted that price resistance among clients had started to act as a brake on output charges," the report said.
