The service sector purchasing managers’ index was better than expected, suggesting a return to growth in May. The PMI jumped from 48.7 in April to 51.7 in May, above the 50 level that normally represents the boundary between decline and expansion. Taken together with improvements in the other PMIs, for manufacturing and construction, the data suggests the UK recession may be coming to an end much sooner than expected.
Markit, which produces the data for the Chartered Institute of Purchasing and Supply, said: “A weighted combination of the output measures from the three UK PMI surveys rose above the critical no-change level of 50 in May. The rise means the UK is the first of the European economies to see a return to economic growth.”
Originally published at David Smith’s EconomicsUK Blog and reproduced here with the author’s permission.