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6 May 2015
UK services PMI rises to eight-month high in April
FXStreet (Mumbai) - The headline seasonally adjusted Markit/CIPS UK Services in April printed at 59.5, beating the estimate of 58.5, and up March’s 58.9. Activity in the sector has now risen for 28 successive months, the longest sequence of growth in seven years.
The new business received by UK service sector companies also rose for the twenty eighth consecutive month in April. The UK service sector also saw a marked rise in employment in April. The sentiment eased slightly since March mainly on account of the election uncertainty.
Average input costs witnessed another solid increase in April mainly due to wage pressures. However, the prices charged by service providers fell for the first time since last October and the rate of drop was the fastest rate in over three years.
As per Chris Williamson, Chief Economist at Markit, which compiles the survey, “Fears of the economy slumping amid election jitters are allayed as an upturn in service sector activity has helped offset sharp slowdowns in both manufacturing and construction. “While the robust rates of economic expansion and job creation signalled by the PMI surveys support the view that the next policy move at the Bank of England will be a rate rise, the lack of inflationary pressures and weakness in manufacturing and construction suggests policymakers will be in no rush to hike, meaning the first rate rise is unlikely to take place before the end of the year.”
The new business received by UK service sector companies also rose for the twenty eighth consecutive month in April. The UK service sector also saw a marked rise in employment in April. The sentiment eased slightly since March mainly on account of the election uncertainty.
Average input costs witnessed another solid increase in April mainly due to wage pressures. However, the prices charged by service providers fell for the first time since last October and the rate of drop was the fastest rate in over three years.
As per Chris Williamson, Chief Economist at Markit, which compiles the survey, “Fears of the economy slumping amid election jitters are allayed as an upturn in service sector activity has helped offset sharp slowdowns in both manufacturing and construction. “While the robust rates of economic expansion and job creation signalled by the PMI surveys support the view that the next policy move at the Bank of England will be a rate rise, the lack of inflationary pressures and weakness in manufacturing and construction suggests policymakers will be in no rush to hike, meaning the first rate rise is unlikely to take place before the end of the year.”