UK PMI Manufacturing rose to 57.9 in March, up from 55.1, above expectation of 55.0. That’s also the highest level in 40 months. PMI services rose to 56.8, up from 49.5, above expectation of 51.0, a 7-month high. PMI Composite rose to 56.6, up from 49.6, also a 7-month high.
Chris Williamson, Chief Business Economist at IHS Markit, said: “The surge in business activity is far stronger than any economists expected, according to Reuters polls, and hints at only a modest contraction of GDP during the first quarter, adding to evidence that the economy has shown far greater resilience in the third lockdown compared to the first..
“Worries persist though, especially in relation to near-record supply chain delays, a continued fall in exports and sharply rising prices, all of which are making life difficult for many companies. Many consumer facing companies meanwhile remain constrained by COVID-19 restrictions, which are likely to curb the overall pace of economic growth for some time to come, especially if we see a third wave of infections.”
