Business activity at UK private sector firms decreased in May, ending a 12-month period of expansion. This was driven by a renewed fall in service sector output, which contrasted with a stronger upturn in manufacturing production. Survey respondents widely commented on subdued sales pipelines and fragile confidence among clients in the wake of the Middle East war. Input cost inflation remained steep in May, largely due to fuel surcharges and intense raw material price pressures. That said, the overall rate of input cost inflation moderated slightly from April's 41-month high. At 48.5 in May, the headline seasonally ... (full story)