In a recently released report, the S&P Global/CIPS UK Composite PMI has shown a decline, dropping from 54.1 in April to 53.0 in May 2024. This updated figure, dated June 5, 2024, highlights a slowdown in the pace of growth for the United Kingdom's private sector.
The PMI, or Purchasing Managers' Index, is an important measure used to gauge the economic health of the manufacturing and service sectors. A reading above 50 indicates expansion, while a reading below signifies contraction. Despite the decline, the index remains above the critical threshold of 50, indicating ongoing growth, albeit at a slower pace.
Industry analysts are closely monitoring this development as the UK economy continues to navigate post-pandemic challenges and the intricacies of global economic uncertainties. The slight decrease in the composite PMI suggests that businesses are feeling the strain of persistent inflationary pressures and potential interest rate hikes, factors that could further impact economic growth in the upcoming months.
