Weak UK service growth - a post-election blip or maybe a warning?

The City thinks it is a mere pause but demand for UK services is falling, prices may be starting to rise - and don't forget Osborne's emergency summer budget

So much for the post-election boost to the economy. The latest evidence from the service sector - which accounts for almost 80% of national output - is that the pace of growth slackened quite sharply in May.

The response from the City was that while disappointing, the Cips/Markit survey was a blip. The economy has had a bit of a growth pause but will start to accelerate again in the second half of the year.

Related: UK service sector growth slows