Services companies returned to positive territory after a brief period of contraction in March, according to a closely watched survey, while further data this week revealed that a dive in manufacturing exports was offset by a mild recovery in the construction sector. Experts said the figures indicated the UK economy was moving ahead but with a reliance on stockpiling – in case of a disorderly Brexit – rather than new orders to boost activity.
The IHS Markit CIPS services sector purchasing managers’ index (PMI) edged higher to 50.4, up from March’s 32-month low of 48.9. Earlier in the week a survey of manufacturers found the headline PMI slipped back to 53.1 last month from 55.1 in March and the construction sector rose to a three-month high of 50.5 in April from March’s 49.7. Anything above 50.0 indicates expansion rather than contraction.
Chris Williamson, chief business economist at IHS Markit, said that taken together the PMIs suggest the UK economy remained weak going into the second quarter of the year.
He said: “The resulting rise in business activity signalled collectively by April’s PMI surveys was only marginal. [...]
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IHS Markit CIPS services sector purchasing managers’ index
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