UK April flash services PMI 54.9 vs 52.9 expected

• Prior 52.9
• Manufacturing PMI 46.6 vs 48.5 expected
• Prior 47.9
• Composite PMI 53.9 vs 52.5 expected
• Prior 52.2

This follows a similar trend to the French and German reports earlier, where the services sector is seen picking up while the manufacturing sector is slumping further instead. On the balance of things, the improvement in services activity is still a net positive for the UK economy (which depends more on it) and is a welcome signal for the BOE at least. S&P Global notes that:

“The fastest rebound in private sector output in a year showed businesses were enjoying the pockets of recovery emerging in the UK economy and activity levels leapt up as a result of new orders and improved supply chain performance. However, the difference between the manufacturing and service sectors was stark.

“Services saw the fastest new order growth for 13 months as consumer confidence grew and spending on a few more luxuries increased. Whereas the manufacturing sector received another body blow and became more entrenched in contraction with a fall in new orders and another round of job shedding. Stronger supply chain deliveries boosting operations was not even enough to improve manufacturers’ fortunes as consumers chose holidays over white goods.

“With another interest rate rise predicted for next month to cool 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 this may provide some respite in the months to come. However, the higher salary payments demanded by skilled workers will remain part of the business landscape and rising borrowing costs may not take the heat out of the economy just yet.”