UK Private Sector Production Drops in March

Source: Markit Economics

The United Kingdom’s business output slipped in March, as prices charged grew by a record high while optimism fell to the lowest level in 17 months. EWU is up 0.48%.

• The Flash UK PMI Composite Output Index stood at 59.7, lower than February’s eight-month high of 59.9.
• The services indicator climbed to a nine-month high of 61.0 from 60.5 the previous month, following the easing of COVID-19 restrictions. 
• The manufacturing output slipped to a five-month low of 52.6 from 56.9 in February, as firms reported supply constraints and cautiousness among clients during the month.
• March saw the biggest climb in the average prices charged since data collection started in November 1999 due to output charge inflation across the sector.
• Job generation accelerated to its fastest pace since August 2021, driven mainly by the services sector, which offset the drop in manufacturing.
• Work backlogs also fell to the slowest pace in 12 months due to lower new order growth and higher employment generation.
• Business optimism in the area fell to 71.4 from 76.1 the previous month, marking the lowest since October 2020 due to inflationary pressures from the Russia-Ukraine conflict.