Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

UK on track to exit recession despite slower services growth, PMI data shows

By David Milliken

LONDON (Reuters) -Britain’s economy looks on track to exit recession when official first-quarter growth data is next published, despite a slowdown in services activity last month, a closely watched business survey showed on Thursday.

The S&P Global Composite Purchasing Managers’ Index – which covers private-sector services and manufacturing firms – edged down to 52.8 for Britain in March from February’s 53.0.

This was just below a provisional reading of 52.9 but above the 50 level that divides growth from contraction for a fifth consecutive month.

The survey showed British businesses faring better than peers in France and Germany – where activity contracted – but lagging behind expansions in Italy and Spain.

“The solid growth rate achieved in March reinforces the view that a rebound in service sector performance is helping the UK economy to pull out of last year’s shallow recession,” Tim Moore, S&P Global’s economics director, said.

“Survey respondents once again commented on a turnaround in business and consumer spending, despite constraints on clients’ budgets from strong inflation and elevated borrowing costs,” he added.

Official first-quarter gross domestic product data is not due until May 10. An end to recession would be welcomed by Prime Minister Rishi Sunak who faces a big polling deficit versus the opposition Labour Party ahead of a national election he expects to hold in the second half of this year.

Thursday’s figures showed that services activity growth in March was slightly weaker than first thought, revised down to a four-month low of 53.1 from an initial reading of 53.4.

But this was largely counterbalanced by an upward revision earlier this week of the manufacturing index to 50.3 from 49.9, its first above-50 reading in nearly two years.

“We expect the economy to gradually pick up steam over the rest of the year, as lower inflation, falling interest rates and tax cuts boost consumer spending,” said Thomas Pugh, economist at RSM UK, who predicts 0.2% GDP growth for the first quarter.

There was mixed news on inflation for the Bank of England, which economists expect to follow other major central banks and cut rates in June or August.

Services businesses raised prices at the slowest rate in six months, but faster than their historic trend, adding to signs of sticky domestic inflation, S&P said. High wage growth kept firms’ costs rising rapidly, even as they kept a lid on hiring.

Britain’s minimum wage rose nearly 10% on April 1.

A separate Bank of England survey on Thursday showed businesses’ wage and selling price expectations cooled in March to their lowest in around two years.

(Additional reporting by Andy Bruce; Editing by Hugh Lawson)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts