UK Services PMI to rise in June

The UK services PMI has cooled markedly over the last year from the most recent peak of 60.5 in August 14 to 56.5 by May this year, in tandem with a fall in orders. However, business expectations have been more stable and actually recorded a small gain in May. 

The PMI is an activity index rather than a weighted average of sub-indices and can thus be quite volatile. 

It fell from 59.5 to 56.5 in May. The broad message from the series that services activity growth has decelerated during the first half of this year but the fall of 3 points in May exaggerates that trend. 

"Accordingly, a bounce of one point to 57.5", predicts Societe Generale.