According to the report from IHS Markit/CIPS, May data pointed to another marginal rise in business activity across the UK service sector, with the rate of expansion edging up to a three-month high. The recovery in service sector output was supported by a modest rebound in new business and the fastest upturn in staffing levels since November 2018. Business optimism also improved in May, with service providers signalled that growth expectations picked up to the strongest since last September.

At 51.0 in May, up from 50.4 in April, the seasonally adjusted UK Services PMI Business Activity Index registered above the 50.0 no change mark for the second month running. The latest reading signalled a marginal rise in service sector output, with the rate of expansion the strongest since February.