British service PMI rises slightly in May: survey

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LONDON, June 5 (Xinhua) --British service sector activity in May rose slightly to a three month high, according to a survey published Wednesday by IHS Markit, a London-based global information provider.

IHS Markit/CIPS statistics showed that the seasonally adjusted service Purchasing Managers' Index (PMI) stood at 51.0 in May, up from 50.4 in April, the second consecutive month above the 50.0 no-change mark.

Meanwhile, the seasonally adjusted all sector output index recorded at 50.7 in May, down from 50.9 in April, also above 50.0 neutral benchmark for the second running month, despite a sharp slowdown in manufacturing and construction sector output.

Chris Williamson, Chief Business Economist at IHS Markit, said: "although service sector business activity gained a little momentum in May, with growth reaching a three-month high, the pace of expansion remained disappointingly muted and failed to offset a marked deterioration in manufacturing performance and a fall in output of the construction industry during the month. "

"As a result, the PMI surveys collectively indicated that the UK economy remained close to stagnation midway through the second quarter as a result, registering one of the weakest performances since 2012,"Williamson said.

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said: "the sector experienced the strongest, albeit still modest improvement in overall activity since February this year after a weak couple of months."

"Service businesses are still grappling with Brexit uncertainty, a weaker UK economy and rising operating costs,"Brock said. Enditem

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