UK Service Sector Growth Eases to 62.6

Source: Markit Economics

The United Kingdom’s service sector expanded for the third straight month in March, indicating a continued rebound after the slowdowns seen due to the COVID-19 Omicron variant. EWU is up 0.03% premarket.

• The seasonally adjusted S&P Global / CIPS UK Services PMI Business Activity Index jumped to 62.6 in March from 60.5 in the previous month.
• The growth rate was the second-fastest recorded since May 1997, following the post-lockdown rebound seen in May 2021.
• New work increased, with more than double the respondents recording growth in new orders versus those that reported a contraction.
• Employment recorded its biggest growth since October 2021, with respondents suggesting tight labor market conditions indicating vacancies.
• Some 40% of respondents reported higher average prices, bringing the prices charged index posting the fastest growth since July 1966.
• Expectations declined, dragged by budgetary constraints and uncertainties due to the ongoing tensions between Russia and Ukraine.