LONDON, June 3 (Xinhua) -- Britain's services business activity in May fell the first time since April 2025, with input prices increasing sharply and business activity expectations easing to a 13-month low, data from S&P Global showed on Wednesday.
The seasonally adjusted S&P Global UK Services Purchasing Managers' Index (PMI) Business Activity Index fell from 52.7 in April to 49.3 in May, and the level was much weaker than the long-run survey average of 54.2, according to the company.
Tim Moore, economics director at S&P Global Market Intelligence, said that UK services companies had signaled a reversal of fortunes in May as business activity contracted after showing some resilience earlier this spring. Subdued business and consumer demand, across both domestic and overseas markets, was cited as factors holding back performance, he added.
"Many service sector companies noted that the Middle East conflict had an adverse impact on sales pipelines and general business prospects. Those in the hospitality and transportation sectors typically commented on squeezed discretionary spending and pressure from sharply rising input costs, while professional services firms reported a setback from rising risk aversion among clients," he added.
The data showed that average cost burdens increased at a sharp pace in May, with the rate of inflation easing only slightly from April's 41-month high. Around half of the survey panel reported higher input prices, with higher operating expenses attributed to rising energy, fuel and transportation bills, alongside rising wages and technology costs.
Worries about a prolonged spike in inflationary pressures, combined with elevated geopolitical tension and subdued demand, continued to weigh on business activity expectations in May, Moore said.
"The degree of optimism eased for the third time in four months, to its lowest since the U.S. tariffs-related slump in April 2025," he said. ■
