UK April final services PMI 55.9 vs 54.9 prelim

• Prior 52.9
• Composite PMI 54.9 vs 53.9 prelim
• Prior 52.2

Better demand conditions is helping to see the UK services sector expand at a quicker pace in April, with a strong rise in output levels seen across the service economy. That's a welcome development at least in the wake of still high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term pressures and the cost-of-living crisis in the UK. S&P Global notes that:

"A strong rate of service sector growth meant that the UK economy started the second quarter of 2023 in positive fashion. Overall private sector output expanded at the fastest pace for one year, despite another fall in manufacturing production during April.

"Service providers experienced the steepest upturn in new work for 13 months as resilient consumer spending combined with a turnaround in demand for business services to boost overall order books. Survey respondents often cited an improvement in clients' willingness to spend, helped by greater confidence with regards to the near-term economic outlook.

"Strong growth in spending on travel, tourism and leisure was a tailwind for the service economy in April, alongside a sustained recovery in international visitors. Total new orders from abroad have now increased for five months running, in contrast to the protracted decline in export sales reported by goods producers.

"While the growth outlook has improved considerably for the service economy this spring, a swift rebound in customer demand appears to have reignited inflationary pressures. Both input costs and average prices charged increased at faster rates in April, which service providers overwhelmingly attributed to greater staff wages. Some 34% of the survey panel reported a rise in their prices charged in April, which was around three times higher than the pre-pandemic average."