Preliminary April services PMI 54.9 vs 53.1 in March (Il Sole 24 Ore Radiocor) - London , 23 Apr - In April, the UK's purchasing managers' index for the manufacturing sector fell to a two-month low of 48.7 from 50.3 in March while that for the services sector increased to an 11-month high of 54.9 from 53.1 the earlier month, according to preliminary data released by S&P Global.

The manufacturing output index fell to a two-month low of 49.1 from 50.9 in March.

The composite output index, a weighted average of services PMI and manufacturing output, rose to an 11-month high of 54.0 from 52.8 in March.

A reading above 50 signals expanding sector activity.

Final April data are published on May 1 for manufacturing and May 3 for services and composite indicators.

'Early PMI survey data for April indicate that the UK economy's recovery from recession last year continued to gain momentum," said Chris Williamson, chief business economist at S&P Global Market Intelligence. "Improved growth in the service sector offset a renewed downturn in manufacturing to propel overall business growth to the fastest for nearly a year, indicating that GDP is rising at a quarterly rate of 0.4% after a 0.3% gain in the first quarter.

'The upturn encouraged firms to take on workers in increased numbers which, alongside April's rise in the National Living Wage, drove cost pressures sharply higher. Although selling price inflation cooled slightly, the upturn in costs alongside solid demand suggests firms may seek to raise prices in the coming months.

'While the improving economic recovery picture is welcome news, the upward pressure on inflation will add to concerns that a sustainable path to below target inflation has not yet been achieved.'.

AAA-Hob

(RADIOCOR) 23-04-24 11:28:19 (0346) 5 NNNN