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The UK private sector economy remained in decline in May, amid manufacturing sector weakness, numbers on Thursday showed. The S&P Global flash composite purchasing managers’ index rose to 49.4 points in May, from April’s final tally of 48.5. Although a two-month high, the latest reading suggests the private sector remains in negative territory, with the PMI sitting below the 50 point neutral mark. ‘The rate of decline moderated in since April and was only marginal. A fractional rise in the service sector activity helped to offset the fastest downturn in manufacturing production since October 2023,’ S&P Global said. The flash services PMI rose to 50.2 points in May, from 49.0 in April. The latest reading was a two-month high. However, the manufacturing PMI fell to a two-month low of 45.1 in May, from 45.4 in April. The manufacturing output index sunk to a 19-month low of 44.8 points from 45.8 in April. ‘May data indicated that new business intakes decreased again in both the manufacturing and service sectors, with the former recording the steeper pace of contraction,’ S&P Global added. ‘Measured overall, new work across the private economy fell to the greatest extent for two-and-a-half years. This was often attributed to cutbacks to non-essential spending and delayed investment decisions among clients amid rising global economic uncertainty.’ Export sales came under pressure amid the ‘negative impact of US tariffs’. However, some firms saw an upturn in new work amid ‘new export opportunities in Asia and Europe’. Expectations for the next 12 months rose after hitting a two-and-a-half year low in April. The survey features a panel of 650 services providers and 650 manufacturers. The responses were collected between May 12 and 20. Final May data for manufacturing is released on June 2, with the services and composite readings on June 4. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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