UK service providers maintained a strong rate of business activity expansion during May, with growth holding close to April's 12-month peak. Survey respondents commonly cited resilient customer demand and cautious optimism about the near-term growth outlook, despite pressure on budgets from elevated inflation. Input costs increased at a rapid pace in May and the latest round of inflation was the strongest for three months. Higher operating expenses were overwhelmingly linked to rising staff wages. Efforts to pass on higher payroll costs resulted in a further steep increase in average prices charged. The headline ... (full story)