–Mar Services PMI 55.3 Vs 53.3 Median, 53.8 In Feb
–Easing Input Cost Pressures May Help Reassure BOE MPC Hawks
LONDON (MNI) – The latest Markit/CIPS purchasing managers’ services
sector survey showed the sector putting in a surprisingly strong
performance in March.
Markit said that the three PMI surveys seen this week
(manufacturing on Monday and construction on Tuesday) showed that the
UK economy had avoided a slide back into recession and were consistent
with 0.5% growth in Q1 (in line with the BOE’s own February forecast).
Unlike other surveys in this series this week, input costs eased –
in this case to their slowest pace since August 2010.
Chris Williamson of Markit said that the strength of the economy as
reflected in these surveys would stay the BOE MPC’s hand on further
asset purchases in coming months.
“PMI data signalled that UK economic growth picked up in March to
round off the strongest quarter for a year. The surveys therefore
indicate that the UK economy has escaped a slide back into recession,
and also suggest that the Bank of England will hold off on further asset
purchases unless the economic situation deteriorates in coming months”.
–London newsroom 0044 207 862 7492; email: dthomas@marketnews.com
[TOPICS: M$B$$$,MABDS$]
