UK March final services PMI 52.9 vs 52.8 prelim

• Prior 53.5
• Composite PMI 52.2 vs 52.2 prelim
• Prior 53.1

This just reaffirms a sustained expansion in the UK economy towards the end of Q1, even if it is weaker than seen in February. The strongest rise in new business volumes in a year is helping to underpin services activity while prices charged inflation eased to a 19-month low (but remains higher than at any time in the 25 years prior to August 2021). S&P Global notes that:

"March data confirmed that the UK service sector returned to growth during the first quarter of 2023, supported by a sustained rebound in new orders as business and consumer confidence improved from the lows seen last autumn.

"Export sales provided an additional boost to the service economy during March as the ongoing recovery in business travel and events helped to drive the fastest rise in new orders from abroad for at least eight-and-a-half years.

"Tight labour market conditions remained a constraint on business capacity across the service sector and fuelled another month of historically steep wage pressures. However, overall business expenses increased at the slowest pace since May 2021 as lower transport bills and falling commodity prices helped to offset rising staff costs.

"Prices charged by service sector businesses increased at the weakest rate for 19 months in March, which provides a clear signal that competitive pressures and improved supply conditions will start to bring down headline rates of consumer price 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 in the coming months."