|
UK private sector activity expanded for the sixth consecutive month in April as a robust recovery in service sector output helped to offset a marginal decline in manufacturing production. Output growth was supported by a solid upturn in new order volumes and a modest acceleration in staff hiring, in each case driven by the service economy. April data indicated a steep increase in average cost burdens across the private sector, with the rate of inflation up sharply from March and the highest since May 2023. Stronger input price inflation was overwhelmingly linked to higher staff wages, particularly in the hospitality and leisure sector. Many survey respondents noted pressure on labour costs from a near 10% annual increase in the National Living Wage and an indirect impact on pay awards to other employees. At 54.0 in April, up from 52.8 in March, the headline seasonally adjusted S&P Global Flash UK PMI Composite Output Index signalled the strongest rate of business activity expansion since May 2023. Service providers indicated a robust and accelerate rise in business activity during April, with the rate of growth the fastest for 11 months. Manufacturing production declined slightly in April, reversing the positive trend seen during the previous survey period. New business volumes increased across the private sector as a whole in April. There were also divergent trends for export sales, with service providers recording the sharpest upturn for 13 months while goods producers experienced another decline. UK private sector employment increased marginally in April. Input price inflation accelerated sharply in April, with overall cost pressures the strongest seen for 11 months. Business activity expectations for the next 12 months remained upbeat in April, with the degree of optimism higher than at any time in 2023. Powered by Commodity Insights
|