- NEWS Desk Global
UPSWING IN UK SERVICES FIRMS POINTS TO RENEWED ECONOMIC GROWTH
The latest survey indicates a strong upswing in activity for British services companies, marking the most significant increase in almost a year. The S&P Global UK Services Purchasing Managers' Index for April rose to 55.0, reaching its highest level since May 2023. This figure, which surpassed the preliminary reading of 54.9, suggests robust expansion in the sector, as readings above 50 denote growth. The survey highlights a substantial rise in new orders, contributing to the positive momentum. However, it also reveals a notable acceleration in cost pressures, the most significant since August. This development is likely to capture the attention of Bank of England officials, who are scheduled to meet next week to determine interest rates.
Several businesses attribute the inflationary pressures to factors such as a 10% increase in the national minimum wage in April. Additionally, rising salary costs have been cited as reasons for the slowdown in employment growth, which reached its lowest level this year. These dynamics underscore the complex economic landscape and the challenges facing policymakers in managing inflationary pressures while sustaining growth.