Global stocks and oil hit three-month highs on strong China services survey – business live
- Markets ride on wave of economic optimism and shrug off growing unrest in the US, as China services activity hits 10-year-high
- Eurozone private sector activity improves in May but still in severe contraction
The UK’s final services PMI reading for May is 29.0, better than the flash estimate of 27.8 and up from April’s nadir of 13.4… but it’s still far below the 50 mark that divides expansion from contraction.
Markit, which compiled the survey, says:
Just over half of the survey panel (54%) reported a drop in business activity during May, while only 13% signalled an increase. Those indicating a decrease in output since April often commented on a severe lack of new business to replace work that had been completed after the lockdown, following deep cutbacks to corporate spending in response to the Covid-19 pandemic.
There were some reports that the gradual reopening of the UK economy, especially the construction sector, had a positive impact on client demand. Other service providers commented on a tentative revival in business conditions following the initial shock of the lockdown period.
The eurozone as a whole has recovered somewhat from April’s nadir, but remains deep in negative territory.