Key Statistics: 9 June 2015

Construction

• The May Markit/CIPS PMI saw some rebound from last month’s near two year low, but was still the second weakest reading in two years. Output growth remained subdued, attributed to lower new business gains in the run-up to the election. However business optimism reached a new nine year high, and staff numbers increased at the fastest pace so far this year. Sub-contractors’ prices continued to rise at record rates, spurring job creation as contractors boost their direct workforce to reduce reliance on subcontractors.

Economy

• UK car registrations rose 2.4% year on year in May, in a sign that UK consumer spending and spending remains strong. The figures from the Society of Motor Manufacturers and Traders also show that during the first five months of the year registrations were 5.7% higher than during the same period of last year. 
• May was the slowest month of growth so far in 2015 for the UK services sector, according to the Markit/CIPS PMI survey, however growth in the workforce remained strong. The PMI covering the manufacturing sector showed an increase in growth between April and May, but the pace of expansion continues to be held back by weak export demand.