UK Services PMI Improved in April: Is Confidence Improving?
UK services PMI in April
According to a report by Markit Economics, the UK Services PMI (Purchasing Managers’ Index) stood at 55.8 in April 2017 compared to 55.0 in March. The figure was above the market expectation of 54.5.
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The UK Services PMI has been improving over the past eight months, indicating better business conditions. It fell slightly in February but rose at a faster pace in April. New orders rose quickly, and jobs growth was at a four-month high.
Services sector contributed most to UK’s GDP in 1Q17
The United Kingdom’s (EWU) economic growth was 0.30% in 1Q17. That was slightly below the market expectation of a 0.40% rise. In 4Q16, GDP growth was 0.60%, which beat the market expectation. The GDP figure surprised the markets, with the service sector contributing the most.
The contribution of the service sector has been increasing gradually. A rise in the services PMI is an important indicator and shows that confidence in the economy is improving. However, there’s still some fears over the country’s exit from the European Union (EZU) (IEV) (HEDJ) (VGK).
In the next part of this series, we’ll look at the performance of the Japan Services PMI in April 2017.