UK PMI Services was finalized at 52.5 in March, up from 51.0 in February, marking the highest level since August 2024. PMI Composite also improved to 51.5, a five-month high.
The modest recovery in overall business activity was driven primarily by strength in the technology and financial services sectors, according to Tim Moore at S&P Global. However, this was offset by notable weakness in manufacturing, which experienced its steepest decline in output since October 2023.
However, service providers expressed limited optimism about the near-term outlook, with confidence levels hovering near two-year lows. The labor market also continued to show signs of strain, with March marking the sixth consecutive month of job losses due to hiring freezes and redundancies.
Price pressures remain a concern. The inflation indicators within the survey suggest that cost and pricing pressures in the services sector are still running significantly hotter than the pre-pandemic decade.
