UK

The UK's final May PMI data were notably weak and point to a sudden loss of economic momentum.

The S&P Global Services PMI fell to 49.3, beating the 47.9 forecast but plunging from 52.7 in April. Since services account for roughly 80% of the UK economy, the move below 50 is particularly significant and indicates that business activity contracted during May.

The Composite PMI, which combines manufacturing and services, dropped to 49.7 from 52.6 in April. Although it came in above the 48.5 consensus estimate, it still fell below the 50 expansion threshold, signaling that overall private-sector activity contracted for the first time in several months.
The UK manufacturing sector maintained solid growth in May, with activity expanding slightly faster than expected. The S&P Global Manufacturing PMI came in at 53.9, edging above both the consensus forecast and April's reading of 53.7.
The UK housing market lost momentum in May as higher borrowing costs and affordability pressures weighed on demand. The Nationwide House Price Index fell 0.6% month-over-month, a much steeper decline than the 0.1% decrease expected by economists and a sharp reversal from April's 0.4% increase.

On an annual basis, house price growth slowed significantly to 1.7% from 3.0% previously, indicating that the pace of appreciation in the housing market continues to moderate.
UK retail activity weakened sharply in April, with Retail Sales falling 1.3% month-over-month, significantly worse than expectations for a 0.6% decline and reversing the previous month’s 0.6% increase. Core Retail Sales also disappointed, dropping 0.4% versus forecasts of a 0.3% decline.
UK annual inflation slowed to 2.8% in April, coming in below expectations of 3.0% and down from 3.3% previously.
UK Unemployment Rate Rises to Highest Level Since 2022

The UK unemployment rate increased to 5.0% in March, slightly above market expectations of 4.9% and rising from the previous 4.9% reading.
U.K. manufacturing production rose much stronger than expected in March, adding to the positive tone from the stronger GDP data.

The report shows:

* Manufacturing Production MoM (Mar): +1.2%
* Expected: -0.1%
* Previous: -0.2%
The U.K. economy grew faster than expected in the first quarter of 2026, supporting signs that economic activity remained resilient despite high interest rates.

The data shows:

* U.K. GDP YoY (Q1): 1.1% vs 0.8% expected and 1.0% previous
* U.K. GDP QoQ (Q1): 0.6%, matching expectations, but sharply higher than the previous 0.2%
UK retail sales weakened sharply in April.

The BRC Retail Sales Monitor fell 3.4% year over year, far below expectations of 0.7% growth and reversing the previous 3.1% increase.
UK mortgage rates remained unchanged at 6.60% in April, holding at the same level as the previous reading.
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