UK service sector grows again in March
By Michele Maatouk
Date: Wednesday 05 Apr 2023
(Sharecast News) - Activity in the UK services sector grew for the second month in a row in March, according to a survey released on Wednesday.
The S&P Global/CIPS services purchasing managers' index edged down to 52.9 from 53.5 in February but remained above the 50.0 level that separates contraction from expansion.
S&P pointed to the fastest increase in new order volumes for a year, reflecting greater confidence among clients in both domestic and international markets. In addition, the latest figures signalled the strongest rise in new export sales since data collection for the series began in September 2014.
Tim Moore, economics director at S&P Global Market Intelligence, said: "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."
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