UK private sector continues to grow in March

21st Mar 2024 07:20

(Sharecast News) - UK service sector output continued to grow in March, albeit at a slower pace, according to a survey released on Thursday, suggesting the economy has likely moved out of recession.

The S&P Global flash UK composite purchasing managers' index - which measures activity in both the services and manufacturing sector - nudged down to 52.9 from 53.0 in February, but remained above the 50.0 mark that separates contraction from expansion.

The services sector PMI printed at 53.4 in March, down just slightly from 53.8 the month before and coming in at a three-month low.

Meanwhile, the flash manufacturing PMI ticked up to 49.9 in February from 47.5 in January, coming in at a 20-month high.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "Further signs of the UK economy having pulled out of last year's brief recession are provided by the provisional PMI data for March. A further robust expansion of business activity ended the economy's best quarter since the second quarter of last year. The survey data are indicative of first quarter GDP rising 0.25% to thereby signal a reassuringly solid rebound from the technical recession seen in the second half of 2023.

"It is also encouraging to see a more broad-based expansion, with a sustained increase in service sector activity accompanied in March by signs of a tentative return to growth for manufacturing output. Business expectations for the year ahead also remain reassuringly lofty by recent standards."