LONDON (Reuters) – Activity slowed significantly in May in the United Kingdom, the results of the S&P Global/CIPS UK purchasing managers survey showed on Thursday.
The composite “flash” PMI index reached 52.8 in May, compared to 54.1 in April and 54.0 expected by economists.
The British economy is starting to show signs of slowing down, after its sharp rebound at the start of 2024 following a mild recession.
S&P Global explains that its indicators suggest growth of 0.3% in the second quarter, compared to 0.6% in the first.
The new orders indicator grew at its slowest pace this year, while the price subindex fell to its lowest since October.
“PMI indicators encourage expectations of a rate cut by the Bank of England in August, if the data continues to move in the right direction this summer,” said Chris Williamson, chief economist at S&P Global.
The services PMI fell to 52.9 points in May, compared to 55.0 in April and a consensus of 54.7.
The manufacturing PMI indicator reached its highest since July 2022, at 51.3, compared to 49.1 in April and 49.5 expected by economists.
(Written by Andy Bruce, French version Corentin Chappron, edited by)
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