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UK’s dominant services sector continues to grow

Even as manufacturing remains mixed, UK economy has surely already emerged from recession.

21 March 2024

After Eurozone PMI data this morning, which surprised to the upside in services and to the downside in manufacturing (particularly in Germany and to a lesser degree in France), the expectation was for a similar showing in the UK. However, Flash Manufacturing PMI data in the UK rose by more than expected in February, from the previous month’s 47.3 to 49.9, although, by holding below 50, this represents its 20th consecutive monthly contraction.

UK Services PMI, however, recorded a slightly softer-than-expected showing but still came up with an expansionary reading of 53.4, slightly down on the previous month’s 53.8. With figures like this, at the combined level, the UK economy surely has already exited the shallow technical recession of late last year. The same cannot yet be said for the Eurozone’s two largest economies which are still probably flirting with, if not technically in, recession.

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Charles Hepworth

Investment Director
My Insights

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