UK PMI Manufacturing jumped to 66.1 in May, up from 60.9, well above expectation of 60.0. That’s another record high since 1992. PMI Services rose to 61.8, up from 61.0, below expectation of 62.0. But that’s still a 91-month high. PMI Composite Rose to 62.0, up from 60.7, record high since 1998.
Chris Williamson, Chief Business Economist at IHS Markit, said: “The UK is enjoying an unprecedented growth spurt as the economy reopens. Factory orders are surging at a record pace as global demand for goods continues to revive, and the service sector is reporting near-record growth as the opening up of the economy allows more businesses to trade. Business confidence has meanwhile hit an all-time high as concerns about the impact of the pandemic continue to fade…
“A direct consequence of demand running ahead of supply was a steep rise in prices, hinting strongly that consumer price inflation has much further to rise after lifting to 1.5% in April. However, the inflationary spike could prove temporary, as many of the price hikes have reflected surcharges on shipping and other shortage-related issues emanating from the pandemic. As these constraints ease, price pressures should abate, but there remains a great deal of uncertainty as to how long it will take for global business and trade to return to normal functioning, especially if new virus variants appear.”
