(Alliance News) - The UK services sector remained in expansion territory last month, though survey numbers on Thursday showed the pace of growth abated.
The S&P Global services purchasing managers' index faded to 53.1 points in March, from 53.8 in February. Moving closer to the 50.0 no change mark, the reading suggested the pace of expansion eased.
It was below the flash figure of 53.4 points and represented the slowest rate of growth in the service economy since November.
"March data pointed to a solid increase in business activity across the service economy, which extended the current period of expansion to five months. That said, the latest survey indicated a loss of momentum since February, largely due to a weaker rise in new work. Survey respondents
noted that improving underlying economic conditions had helped to support service sector growth, although squeezed disposable household incomes and elevated interest rates again weighed on demand," S&P Global said.
"Strong wage pressures and rising transport costs pushed up input costs in March. The rate of prices charged inflation at service sector firms nonetheless eased to its lowest for six months amid some reports of constrained pricing power."
The composite PMI, which uses the earlier manufacturing reading and Thursday's services score, faded to 52.8 points in March from 53.0 in February. February's reading was a nine-month-high. The March reading was a touch below the flash score of 52.9.
Numbers on Tuesday showed the manufacturing PMI returned to growth territory, picking up to 50.3 points in March, from 47.5 in February, and beating the earlier flash estimate of 49.9.
The service sector survey features a panel of 650 firms. Responses were collected between March 12 and 26.
By Eric Cunha, Alliance News news editor
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