UK March final services PMI 52.9 vs 52.8 prelim | Forexlive

• Prior 53.5
• Composite PMI 52.2 vs 52.2 prelim
• Prior 53.1

This just reaffirms a sustained expansion in the UK economy towards the end of Q1, even if it is weaker than seen in February. The strongest rise in new business volumes in a year is helping to underpin services activity while prices charged inflation eased to a 19-month low (but remains higher than at any time in the 25 years prior to
August 2021). S&P Global notes that:

“March data confirmed that the UK service sector returned
to growth during the first quarter of 2023, supported by a
sustained rebound in new orders as business and consumer
confidence improved from the lows seen last autumn.

“Export sales provided an additional boost to the service
economy during March as the ongoing recovery in business
travel and events helped to drive the fastest rise in new
orders from abroad for at least eight-and-a-half years.

“Tight labour market conditions remained a constraint on
business capacity across the service sector and fuelled
another month of historically steep wage pressures.
However, overall business expenses increased at the
slowest pace since May 2021 as lower transport bills and
falling commodity prices helped to offset rising staff costs.

“Prices charged by service sector businesses increased at
the weakest rate for 19 months in March, which provides
a clear signal that competitive pressures and improved
supply conditions will start to bring down headline rates of
consumer price inflation in the coming months.”