(Alliance News) - UK services sector activity growth hit a seven-and-a-half year high in April as lockdown restrictions eased, according to IHS Markit on Thursday.
The IHS Markit/CIPS UK services purchasing managers' index was revised higher to 61.0 points in April from a preliminary estimate of 60.1, having registered 56.3 in March. The print remained well above the 50.0 mark which separates expansion from contraction.
The latest reading signalled the fastest pace of expansion in the sector since October 2013, driven by sharp increases in business and consumer spending, IHS Markit said.
The UK composite PMI score was 60.7 points in April, up from 56.4 in March, pointing to the fastest increase in private sector business activity for seven-and-a-half years.
Released on Tuesday, the UK manufacturing PMI print was 60.9 points in April, up from 58.9 in March.
Service providers surveyed noted that the UK government's roadmap for easing Covid-19 restrictions had been a key factor helping to lift activity. There was a direct boost to output from the reopening of some customer-facing parts of the economy in April, as well as a positive impact on the rest of the service sector due to improving business and consumer confidence.
"April data illustrates that a surge of pent up demand has started to flow through the UK economy following the loosening of pandemic restrictions, which lifted private sector growth to its highest since October 2013. The roadmap for reopening leisure, hospitality and other customer-facing activities resulted in a sharp increase in forward bookings and new project starts across the service sector," said IHS Markit's Tim Moore.
"If the rebound in order books continues along its recent trajectory during the rest of the second quarter, then service sector output growth looks very likely to surpass the survey-record high seen back in April 1997," Moore added.
The UK services PMI is compiled by IHS Markit from responses to questionnaires sent to a panel of around 650 service sector companies.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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