7 Apr 2015
UK services activity in March expanded at a fastest pace since August 2014
FXStreet (Mumbai) - Markit/CIPS UK Services Business Activity Index rose to 58.9 in March, from 56.7 in February. Over the first quarter of 2015 as a whole the Index averaged 57.6, a better outcome than the 56.9 posted in Q4 2014.
The rate of growth in new contracts accelerated to the highest since last September, while Business expectations were at their strongest since May 2014. However, the rate of job creation eased to a three-month low.
Input cost inflation remained historically muted in May, despite evidence of rising wage pressures. A weaker Euro was cited as a reason by a number of firms for disinflationary pressures during the month. Meanwhile, service providers raised their own charges only by a fractional rate.
As per Chris Williamson, Chief Economist at Markit, “The UK economy moved up a gear in March, recording the strongest pace of growth since last August. The three PMI surveys collectively indicate that the economy grew by 0.7% in the first quarter, reviving from the slowdown seen late last year. While the data support the view that the next move in interest rates will be upward, the lack of inflationary pressures suggests the first hike remains some way off, and probably not this year unless we see some significant upturn in wage growth.”
The rate of growth in new contracts accelerated to the highest since last September, while Business expectations were at their strongest since May 2014. However, the rate of job creation eased to a three-month low.
Input cost inflation remained historically muted in May, despite evidence of rising wage pressures. A weaker Euro was cited as a reason by a number of firms for disinflationary pressures during the month. Meanwhile, service providers raised their own charges only by a fractional rate.
As per Chris Williamson, Chief Economist at Markit, “The UK economy moved up a gear in March, recording the strongest pace of growth since last August. The three PMI surveys collectively indicate that the economy grew by 0.7% in the first quarter, reviving from the slowdown seen late last year. While the data support the view that the next move in interest rates will be upward, the lack of inflationary pressures suggests the first hike remains some way off, and probably not this year unless we see some significant upturn in wage growth.”