Core Insights - The UK business environment showed signs of improvement in May, despite worsening conditions in the manufacturing sector [1] - The composite PMI data rose from 48.5 in April to 49.4 in May, approaching the growth threshold of 50 [1] - The service sector, which dominates the UK economy, is slowly returning to growth, contrasting with significant job losses in manufacturing [1] Manufacturing Sector - The manufacturing sector experienced its largest employment decline since May 2020, contributing to a drag on the manufacturing index [1] - The pace of layoffs in manufacturing reached the highest level since the global financial crisis nearly 20 years ago [1] Economic Outlook - Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that while positive news on tariffs and trade has helped restore some business confidence, overall confidence in future economic prospects remains low [1]