Mixed flash PMI; little overall impact on policy (and hence little market react)

• UK PMI: Weaker than expected for services and higher for manufacturing (with a weaker composite output than exp).
• There was less focus on cost passthrough in this release, but that was due to a slowdown in input cost inflation - and there was continued less increases in services prices as a result (although goods producers saw their highest output prices in a year).
• Relatively mixed report with little new learnt here and hence no real impact on near-term BOE cutting plans.

Highlights from the press release:

• UK businesses reported the softest increase in average selling prices for over three years in May, partly linked to a slowdown in input cost inflation after April’s steep rise. Survey respondents highlighted a softening of labour cost pressures following the increase in the National Living Wage, with services firms especially seeing a drop in input price inflation."
• "The cooldown was solely driven by the service sector, where' some panellists indicated greater efforts to stimulate new work intakes amid competitive pressures. In contrast, goods producers raised their factory gate prices at the sharpest rate in a year, which firms mainly attributed to the pass-through of higher salary payments and material prices to clients.