PMI: Big fall in composite and services

Big falls in the service and composite PMIs in the UK, with the details not looking positive either. Highlights from the press release:

• For the composite PMI "the month-on-month loss of momentum in May (-6.4 index points) was the fourth-largest on record and exceeded anything seen prior to the pandemic."
• "Latest data indicated the fastest rise in operating expenses since this index began in January 1998, led by a rapid acceleration in input cost inflation across the service economy"
• "Service providers signalled the greatest loss of momentum in May (index at 51.8, down from 58.9 in April), with survey respondents often noting that economic and geopolitical uncertainty had contributed to a slowdown in client demand. However, many businesses in the travel, leisure and events sector still commented on strong growth conditions due to a rapid recovery from pandemic restrictions."
• "Manufacturing output (index at 51.8, down from 54.3 in April) mirrored the marginal growth trend seen in the service sector, although this represented a more modest loss of momentum relative to the prior month. "
• "business expectations eased to the lowest for two years in May amid worries about the global economic outlook and downbeat projections for consumer spending. The latest drop in business optimism was most acute in the service sector, with the month-on-month loss of momentum the greatest since March 2020."