The UK Preliminary Manufacturing PMI rose more than five points in May, rising to 66.1 since April 60.9, the all-time high since the indicator emerged in January 1992. Furthermore, the result significantly exceeds the 60 points expected by the market.
According to IHS Markit, the increase has been due to strong increases in production, new orders and employment, along with a return to growth in the purchasing inventory component. The exceptionally high PMI reading also reflected a rapid increase in supplier lead times during May (this component has a weight of 15% in the manufacturing PMI).
The preliminary PMI for services has risen eight tenths, standing at 61.8 compared to the previous 61, without reaching the 62 predicted by experts. The result for May is the maximum recorded in 91 months, specifically since October 2013.
The rise in the services sector has been supported by the partial reopening of the hotel sector and the rollback of pandemic restrictions, coupled with strong increases in both consumer and business spending in May.
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