UK services PMI returns to growth in April, prints 50.4

The UK services sector activity jumped back into the expansion territory in the month of April, the latest survey report from Markit Economics showed this Friday.

The headline seasonally adjusted IHS Markit/CIPS UK Services PMI Index rose to 50.4 in April vs. 48.9 booked in the previous month while coming almost in line with the expectations (50.5 expected).

Key Points:

Marginal rise in service sector business activity.

New work dips for the fourth month in a row.

Input cost inflation accelerates to its highest since January.

Chris Williamson, Chief Business Economist at IHS Markit, which compiles the survey, noted:

“A near-stagnant service sector in April means that all three major parts of the economy were struggling to grow in April. Although the service sector joined construction in reporting a return to growth, in both cases the expansions were only marginal. An upturn in manufacturing is meanwhile showing signs of waning, as a temporary boost from Brexit-related stockpiling faded in April.”

“The resulting rise in business activity signalled collectively by April’s PMI surveys was only marginal, suggesting the economy remained more or less stalled at the start of the second quarter.”