UK's services PMI to soften slightly in May

UK's services activity has been very strong according to the PMI but has gone through a very weak patch at the start of the year according to the official data. However, even the latter point to a strong rebound since then.

The background conditions are highly favourable. Real income growth is picking up and the shock election result should have been positive for consumer sentiment and most particularly for spending plans. However, this is already reflected in the PMI. Societe Generale expects a dip to 58.5.