The UK economy seems to be past the bottom of deceleration that took place as of late caused by inclement weather, as the services sector registered more-than-forecasted growth.
The PMI data shows hike to 54.0 last month from 52.8 in April, surpassing experts’ prediction of a slight upping to 53. Index reading higher than 50 denotes growth.
And though the recent business survey by IHS Markit and the Chartered Institute of Procurement and Supply provides optimistic figures, the key gauge for the services industry found out of growing concerns over the country’s parting with the EU.
Britain’s Services PMI by Markit and Cips revealed that the sector, which encompasses banks, restaurants, restored its activity to the highest level in three months in May.
But at the same time surveyed companies said that the number of business orders grew rather slowly, and they saw Brexit as the chief limiting factor. It seemed that the industry was losing its lifeblood in the month because concerns linked to Brexit kept eating away at confidence, Duncan Brock of Cips said.