The UK services sector returned to modest growth in May, with PMI Services finalized at 50.9, rebounding from April’s 27-month low of 49.0. Composite PMI also edged into expansion at 50.3, up from 48.5.
Tim Moore of S&P Global highlighted that easing fears over US tariffs, firmer global markets, and renewed client confidence underpinned the service sector’s recovery. Business sentiment for the year ahead climbed to a seven-month high, driven by investment plans and improved sales expectations.
However, the underlying job market remains soft. The eight-month stretch of declining employment in the sector now marks the longest non-pandemic downturn since the global financial crisis.
But encouragingly, input cost inflation eased from April’s peak, while competitive pricing pressures led to the slowest increase in service charges since October.
