After a 2-points drop in April, UK services PMI stabilized unexpectedly in May. UK services PMI stayed unchanged at 53.3, while the consensus was looking for a decline to 52.4. The outcome is in sharp contrast with the UK manufacturing PMI, publish a week ago, which plunged to 45.9. A significant improvement in new business supported the headline figure together with a fall in input price inflation. Business expectations remained above the 50-benchmark level on hopes that the recent growth will be sustained. The UK services PMI holds up Surprisingly well, contrary to the manufacturing PMI and the hard data. Nevertheless, the UK services sector will probably continue to face headwinds due to the continued troubles in Europe and a potential tumble in domestic demand after the Olympics.