The services purchasing managers' index (PMI) fell to a three-month low of 53.8 from 55.8 Britain's services grew more slowly than expected last month as businesses put off investment decisions before this week's national election and higher inflation squeezed households, a survey showed on Monday.
The British economy appears to have recovered some of its momentum after slowing in the first three months of 2017, when the cost of the pound's fall after last year's Brexit vote caught up with consumers. The weaker services figure in May increased the risks that quarterly growth in the overall economy might not hit its forecast of 0.5 percent GDP growth as UK services accounts for close to 80% of the UK economy.
Euro-area manufacturing and services continued to expand at the fastest pace in six years, powered by growth in the region’s two biggest economies of Germany and France. A composite Purchasing Managers’ Index remained unchanged at 56.8 in May month.
The final PMI readings add to mounting evidence that the euro zone is enjoying a strong second quarter and that the outlook for the euro-zone economy seems to be a little more positive. Output growth was fueled by new orders with optimism about the outlook for the year ahead jumping to its highest level since 2012. Growth in Germany was led by manufacturing while France’s expansion was driven by services.