LONDON, June 5 (Xinhua) -- The UK service sector has expanded at a three-month high in May but still failed to cushion the sharp slowdown in manufacturing and construction due to Brexit uncertainties, indicating an economy close to stagnation, a report said on Wednesday.

The IHS Markit/CIPS UK Services PMI edged up to 51.0 in May, up from 50.4 in April, above the 50.0 reading to represent expansion. The recovery in service sector output was supported by a modest rebound in new business and the fastest upturn in staffing levels since November 2018, IHS Markit said.

Chris Williamson, chief business economist at IHS Markit, said: "Although service sector business activity gained a little momentum in May, with growth reaching a three-month high, the pace of expansion remained disappointingly muted and failed to offset a marked deterioration in manufacturing performance and a fall in output of the construction industry during the month."

"As a result, the PMI surveys collectively indicated that the UK economy remained close to stagnation midway through the second quarter as a result, registering one of the weakest performances since 2012," Williamson said.

Despite a sustained recovery in business optimism during May, survey respondents noted that UK's domestic political uncertainty remained a key factor holding back their growth expectations for the year ahead, according to IHS Markit.

"Service businesses are still grappling with Brexit uncertainty, a weaker UK economy and rising operating costs," said Duncan Brock, group director at the Chartered Institute of Procurement and Supply.

The IHS Markit/CIPS UK construction PMI fell to 48.6 in May, with commercial building remained hardest-hit by Brexit uncertainty. The manufacturing PMI slumped to 49.4 in May, down from 53.1 in April due to record stockpiling ahead of the UK's original departure from the EU at the end of March.