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Highlights
- According to S&P Global, there has been a sharp decline in the growth of UK services in May 2022.
- From 58.9 in April, the score of the IHS Markit/CIPS UK services PMI survey plunged to 4 in May 2022.
- May was a strong month for the hospitality industry as Brits started spending on travel and leisure.
With the alarms of recession ringing in the UK amid escalating inflationary pressures, the services industry is going through a slowdown. According to S&P Global, there has been a sharp decline in the growth of UK services in May 2022. Last month, the growth has hit its lowest level since early 2021.
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From 58.9 in April, the score of the IHS Markit/CIPS UK services PMI survey plunged to 53.4 in May 2022. However, even when the score has declined, the sector witnessed growth, which is represented by any score of more than 50.
The headline index reading hasn’t been this low since February 2021, mainly due to the worsening economic outlook and falling consumer confidence. Amid the ongoing cost-of-living crisis, demand for goods as well as services has been falling.
Nevertheless, the easing of the pandemic-related curbs has led to the recovery of the hospitality sector. May was a strong month for the hospitality industry as Brits started spending on travel and leisure. But the sector is still facing staff shortages and supply chain bottlenecks.
As per reports, service providers are worried that if they raise the prices, customers wouldn’t be ready to pay for the same, which would push down the overall spending by the end of this year. Let’s look at 3 UK service providers which have performed well this year.
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Hunting plc (LON: HTG)
The shares of the UK-based oil & gas equipment & services provider, Hunting plc, were up by 0.88% at around 1:30 PM (GMT+1) on 7 June 2022, at GBX 343.00. On a year-to-date basis, the company has provided its shareholders with a return of 102.72% as of 7 June 2022, while its one-year return stands at 30.67%. The company’s current market cap stands at £560.80 million.
John Menzies plc (LON: MNZS)
The shares of the leading provider of airport services, John Menzies plc, were up by 0.17% at around 1:30 PM (GMT+1) on 7 June 2022, at GBX 598.00. On a year-to-date basis, the company has provided its shareholders with a return of 92.61% as of 7 June 2022, while its one-year return stands at 87.77%. The company’s current market cap stands at £548.90 million.
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Serco Group plc (LON: SRP)
The shares of the UK-based environmental & facilities services provider, Serco Group plc, were down by 0.28% at around 1:30 PM (GMT+1) on 7 June 2022, at GBX 179.50. On a year-to-date basis, the FTSE250 company has provided its shareholders with a return of 33.36% as of 7 June 2022, while its one-year return stands at 33.16%. The company’s current market cap stands at £2,166.47 million.