Not a merry Mayasthe key services sector slows

Activity in the services sector eked out its slowest growth since February as inflation and general election uncertainty took its toll last month.

The Markit/cips services purchasing managers’ index (PMI) fell to 53.8 in May, down from 55.8 in April and below economists’ expectations of 55.0. A reading above 50 indicates growth.

The services sector – ranging from retail to banking, pubs and IT – saw output ease back from April’s four-month high after the demand for new orders slipped.

Itcomesafterpmireports for the manufacturing and construction industries beat expectations for May after delivering solid performances.

Chris Williamson, chief business economist at IHS Markit, said: “Optimism about the year ahead is running below the longrun average, weighed down principally by concerns over Brexit, political uncertainty and weaker spending by households.

However, he said firms were still expanding headcounts.