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Bloomberg
The UK services sector grew more than forecast in May as the economy continued to plot a modest recovery from the snow disruption of the first quarter.
IHS Markit said on Tuesday its Purchasing Managers Index rose for a second month to 54 from 52.8. That beat the reading of 53 predicted in a Bloomberg survey.
Taken together with surveys on manufacturing and construction, the report suggest the economy is on course for growth of about 0.3 to 0.4 percent this quarter, Markit said. Expansion slowed to just 0.1 percent in the first three months of the year.
However, the outlook remains uncertain, Markit said, with Brexit continuing to hold back investment, cost pressures building and new orders growing at their weakest pace since 2016. Confidence across the services sector dropped for the third time in four months.
“The improvement in service sector activity adds to evidence that the economy is on course to rebound in the second quarter but, like the earlier manufacturing and construction surveys, raises questions about the outlook,†said Chris Williamson, Markit’s chief business economist.