The UK services sector is slowing down, but manufacturing is growing

The economic recovery from the short-lived recession has stalled over the past month, according to a respected study, dashing Rishi Sunak’s hopes of linking the general election campaign to the UK’s GDP growth gaining momentum.

Although economic activity slowed last month, inflation in the services industry fell to its slowest pace in more than three years, again raising the possibility of the Bank of England cutting interest rates in the summer.

The rapidly composite Purchasing Managers’ Index (PMI) from S&P Global and the Chartered Institute of Procurement and Supply for May fell to 52.8 from 54.1 the previous month, the lowest reading since March. City analysts expected the reading to drop to 54.

These data signal that private sector activity in the UK economy has weakened