- Prior 53.1
- Manufacturing PMI 48.7 vs 50.4 expected
- Prior 50.3
- Composite PMI 54.0 vs 52.6 expected
- Prior 52.8
Similar to the Eurozone, it is a tale of two PMIs with the services reading coming in stronger while the manufacturing reading being weaker. At the balance, that's still good news for the UK economy - which relies more on services - as the business expansion gathers pace. The services and composite readings are 11-month highs with the manufacturing reading being a 2-month low. S&P Global notes that:
“Early PMI survey data for April indicate that the UK economy's recovery from recession last year continued to gain momentum. Improved growth in the service sector offset a renewed downturn in manufacturing to propel overall business growth to the fastest for nearly a year, indicating that GDP is rising at a quarterly rate of 0.4% after a 0.3% gain in the first quarter.
“The upturn encouraged firms to take on workers in increased numbers which, alongside April's rise in the National Living Wage, drove cost pressures sharply higher. Although selling price inflation cooled slightly, the upturn in costs alongside solid demand suggests firms may seek to raise prices in the coming months.
“While the improving economic recovery picture is welcome news, the upward pressure on inflation will add to concerns that a sustainable path to below target inflation has not yet been achieved.”