- Before 53.1
- Manufacturing PMI 48.7 versus 50.4 expected
- Before 50.3
- Composite PMI 54.0 versus 52.6 expected
- Before 52.8
Similar to the Eurozone, this is a tale of two PMIs, with the services figure being stronger while the manufacturing sector figure being weaker. Overall, this remains good news for the UK economy – which is more services-based – as business expansion accelerates. Services and composite figures are at their highest level in 11 months, while those for the manufacturing sector are at their lowest in two months. S&P Global notes that:
“Early data from the April PMI survey indicates that the UK economy’s recovery from last year’s recession has continued to gather pace. Improving growth in the services sector has offset a further slowdown in the manufacturing sector, propelling overall business growth to its fastest level in almost a year, indicating that GDP is growing at a quarterly rate of 0.4% after a gain of 0.3% in the first quarter.
“The recovery has encouraged businesses to hire more workers, which, alongside the rise in the national living wage in April, has led to a sharp rise in cost pressures. Although retail price inflation has eased slightly, rising costs alongside robust demand suggest companies may look to raise prices in the coming months.
“While the improving economic recovery picture is good news, upward pressure on inflation will add to concerns that a sustainable path to below-target inflation has not yet been achieved . »
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