UK PMI reaches six-month high

S&P Global’s purchasing managers’ index for the UK rose to a six-month high of 52 in March, up from 50.5 the previous month. The index was well above the 50-point threshold that separates growth from contraction. The data was also better than analysts polled by Bloomberg had expected.

According to the news agency, this positive trend was facilitated by steady growth in the financial services sector and some recovery in demand for consumer services. However, there was a decline in employment and economic confidence.

UK manufacturing output fell at the fastest pace in 17 months. Bloomberg attributes this to the imposition of US tariffs.

Such data, although showing an improvement in the economy after the victory of the Labour Party in the elections, correspond to a quarterly GDP growth of only 0.1%, as calculated by S&P Global. According to the company, the UK is struggling after a drop in business and consumer confidence caused by tax hikes in Labour's first budget.