UK Business Output Growth Falls to 15-Month Low

Source: S&P Global

Business activity in the United Kingdom slowed for the second straight month in May, marking the weakest expansion in 15 months. EWU was up 0.42%, after hours, while EZU is down 0.90% premarket.

• The S&P Global / CIPS UK Services PMI Business Activity Index stood at 53.4 in May, lower than the 58.9 in April.
• The latest reading is the lowest in 15 months since February 2021, reflecting the weaker business and consumer confidence during the month.
• Confidence was hit by concerns over the economic outlook, with exceptions such as travel, leisure, and entertainment.
• The new business expansion was the weakest since December 2021, with providers saying the higher prices impacted demand.
• Cost inflation was the steepest since data collection started in July 1996, due to higher energy, fuel, and raw material costs.
• Optimism declined to the weakest level since October 2020, due to concerns regarding living costs and global economic uncertainties.