UK services PMI figures have arrived and they are looking weak. The expectation of 55.0 (anything above 50.0 indicates growth) proved an unreachable summit as the index creeped in at 53.8 for May. Not great news for the stability of the Pound which is likely to fluctuate over the next week as the election reaches its final stage. Commenting on the figures, Yael Selfin, Chief Economist at KPMG UK said:

“These latest PMI figures point to a more subdued outlook for UK services. Those relying on the spending appetite of UK consumers are feeling the pressure, while export driven services still benefit from the weaker pound. The softer data for UK services contrasted with indications of a pick-up in both manufacturing and construction activity, which represent a smaller share of UK output, hence some resurgence in growth momentum this year should not be ruled out following a weak start in Q1.”

With Brexit negotiations just around the corner, the UK might be about to see a slide towards the Brexit economy that was predicted before the vote in 2016. Sadly, it is unlikely that the next government will have the stomach for liberalising reforms that the country needs to boost growth in the coming years.