May’s PMIs suggest that economic growth is being supported by the services sector while manufacturing activity continues to contract. The strength in services activity may be supporting persistent domestic inflationary pressures, which will increase the pressure on the Bank of England to raise interest rates above 4.50% at the next policy meeting in June.
UK Drop-In (24th May): Will April CPI shift the UK inflation narrative? Join this 20-minute online briefing shortly after the data release to learn more. Register here.
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