UK PMI eases, construction growth edges up in May
UK consumers slow spending in May
Chemring jumps on high order intake in H1
FTSE 100 down 0.4, FTSE 250 adds 0.1

June 6 Reuters Britain39;s benchmark FTSE 100 dropped in early trade on Tuesday, dragged down by energy stocks, while investors assessed fresh economic data in the face of concerns over the prospect of a global slowdown.

The resourceheavy FTSE 100 slipped 0.4 as of 0844 GMT, with energy stocks shedding 1.7 tracking lower crude oil prices.

The allsector PMI eased to 53.8 in May from 54.6 in the previous month, while the SP GlobalCIPS UK Construction PMI rose to 51.6 from 51.1 in April.

This comes a day after British retail sales growth slowed to a sevenmonth low in May.

The British Retail Consortium has stated that growth in discretionary spending continues to tumble as the high cost of living squeezes households, Rabobank analysts said in a note.

Despite this, very sticky inflation data in the UK suggests more BoE rate hikes are to be expected.

A Reuters poll showed that the Bank of England is expected to be far more aggressive in policy tightening to contain stubbornlyhigh inflation, with majority of the economists surveyed forecasting a 25basispoint lift this month.

The domestically focused FTSE 250 midcap index was up 0.1, boosted by a 8.4 gain in Paragon Banking Group Plc after it upgraded its annual net interest margin outlook and buyback target.

Among other single stocks, British defence…