The UK’s private sector experienced its fastest growth in almost a year during April, thanks primarily to a robust performance in the service industry. According to experts, this positive economic data suggests that the UK economy is continuing to recover from the recession toward the end of 2023. In April, the closely monitored S&P Global/CIPS flash UK purchasing managers’ index (PMI) reported a reading of 54, up from 52.8 in March. Since May of last year, these preliminary data-based flash figures have been the highest recorded. Any score below 50 indicates contraction, while any score above it indicates growth. Chris Williamson, chief business economist at S&P Global Market Intelligence, commented, ‘Early PMI survey data for April show that the UK economy’s recovery from recession last year has continued to gain momentum.’ ‘While the improving economic recovery picture is welcome news, the upward pressure on inflation will add to concerns that a sustainable path to below-target inflation has not yet been achieved.’ The overall business growth reached its highest level in nearly a year, driven by the service sector’s improved growth, which offset a new decline in manufacturing. This indicates that GDP (gross domestic product) is increasing at a quarterly rate of 0.4% following a 0.3% increase in the first quarter. The survey found that service sector businesses reported a surge in growth over the month, hitting their highest level in 11 months. Companies highlighted increased business and consumer spending, supported by a broader economic recovery.
