U.K. Services Slump Moderates in May on Lighter Lockdown

(Bloomberg) --

U.K. services shrank at a slower pace last month than in April as lockdown measures started to ease.

IHS Markit’s Purchasing Managers Index rose to 29, up from a record low and exceeding the flash estimate of 27.8. Over half of the survey panel reported a drop in activity, while 13% said it increased.

The British government and the Bank of England have flooded the economy with stimulus to keep it afloat as restrictions on socializing and travel keep it at a standstill. The question now is how quickly trading can bounce back as the lockdown is slowly lifted.

Some service providers are “hopeful that the reopening of clients’ business operations would start to boost activity in the coming months” said Tim Moore, a director at IHS Markit. “However, customer-facing businesses continue to report extreme levels of concern about their near-term prospects.”

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