UK economy experiencing weak growth says research
The UK’s economy is reportedly experiencing weak growth but inflation pressures have eased, research firm Markit has said.
The firm, which compiles the closely-watched purchasing managers’ indexes (PMI), said the recent surveys indicated that UK growth in the second quarter was unlikely to exceed 0.3%.
However, easing inflation meant that an early rate rise was less likely.
Markit’s latest PMI survey found that growth in the UK’s service sector slowed in May.
It recorded a PMI reading of 53.8, down from 54.3 in April and the lowest reading since February. A figure above 50 indicates expansion.
The slowdown in the services sector - a key sector for the UK economy - was put down to weaker consumer spending, and the large number of public holidays in the month
Separate data released by the Office for National Statistics (ONS) showed that the volume of new construction orders in the first three months of the year fell by 23% from the previous quarter, and were down 18% from the same period last year.