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UK’s services sector growth beats forecasts

Dominant services sector expands for the sixth consecutive month, but manufacturing continues to labour.

23 April 2024

UK Services PMI data rose more than expected in April to a reading of 54.9, a short-term high not seen in almost a year, reflecting the continuing recovery from the slowdown seen in the second half of last year. However, the strong showing in services was in stark contrast to the contraction still seen in the manufacturing sector which continues to struggle with a contractionary reading of 48.7.

Companies surveyed reported that the prices they charged went up at the slowest pace in a number of years, less due to declining demand but more through competition. This may not be seen as good news for the Bank of England who are still not comfortable enough that the inflation dynamics are genuinely shifting and that consumers are reducing demand.

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Charles Hepworth

Investment Director
My Insights

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