UK delivered a mixed set of PMI readings in March, with services providing a welcome surprise as the index rose from 51.0 to 53.2, a 7-month high. PMI Composite also improved from 50.5 to 52.0, suggesting modest expansion. However, the picture was clouded by a sharp deterioration in manufacturing, where the index slumped from 46.9 to 44.6 — its lowest level in 18 months.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, cautioned against over-optimism, noting that “one good PMI doesn’t signal a recovery.”
The data points to the economy barely expanding, with GDP growth tracking around 0.1% for the quarter. Employment continues to be trimmed as firms remain wary of rising costs and an uncertain economic outlook, with business confidence still hovering near January’s two-year low.
Looking ahead, challenges appear to be mounting. Businesses are bracing for higher National Insurance contributions starting in Apri. Additionally, the anticipated unveiling of US tariff policy on April 2 adds another uncertainty.
