UK services PMI rebounds less than expected in April

The services sector activity in the UK economy witnessed an upturn in the month of April, but missed the consensus forecast, a fresh report from Markit Economics showed on Thursday.

The services PMI jumped to 52.8 in April versus a 51.7 reading booked in March. Markets predicted an expansion to 53.5 last month.

Key Points:

Business activity rises at a subdued pace in April.

The weakest upturn in employment since March 2017.

Inflationary pressures moderate.

Chris Williamson, Chief Economist at Markit, noted: “The services survey adds to signs that the rate of economic growth remained disappointingly subdued at the start of the second quarter. The three PMI surveys collectively showed only a muted rebound in business activity after being disrupted by heavy snowfall in March, failing to regain February’s pace of growth to suggest that the underlying performance of the economy has continued to deteriorate.”