The S&P Global/CIPS UK Services PMI has shown a deceleration in the services sector for May 2024, dropping to 52.9 from the previous month’s 55.0. The updated data, reflecting the business activity in the UK's dominant services sector, was released on 5 June 2024.
The drop from 55.0 to 52.9 marks a significant cooldown in the sector’s growth rate, indicating that while expansion is continuing, the pace is moderating. This slowdown may reflect a cautious optimism as businesses navigate through a landscape influenced by ongoing economic uncertainties and inflationary pressures.
Analysts suggest that the dip, although noteworthy, still signals expansion as the PMI remains above the 50.0 threshold, which separates growth from contraction. The data will likely be scrutinized for deeper insights into the health and resilience of the UK’s service-centric economy as the year progresses.
