The contraction in private-sector activity seen since the end of 2020 extended in May, despite the slight improvement. The private-sector PMI index rose in May to its highest reading since February 2021, but it remained in the contraction territory for the sixth consecutive month. The contraction in private-sector activity eased as the headline PMI index picked up to 48.6 in May from 47.7 in April 2021. The reading came consistent with our expectations that the pandemic-related implications and the impact of May’s partial lockdown measures weighed on demand and hence private-sector activity.
Mona Bedeir
Senior Economist
T +202 3300 5722