UK private-sector activity grew at its fastest rate in six months, driven by stronger performance in the services sector, according to S&P Global’s flash UK composite purchasing managers’ index (PMI). The index rose to 52 in March from 50.5 in February, surpassing analyst expectations of 51. A score above 50 signals expansion.
Despite the improvement, economists remain cautious, warning that this increase does not indicate a sustained recovery. Business confidence remains near a two-year low, with concerns over rising taxes and labour costs set for April. Manufacturing continues to struggle, recording its weakest confidence levels in over two years and its lowest activity reading in 17 months. Industry leaders cite potential US tariffs and uncertain global demand as key risks.
In contrast, the services sector saw its strongest growth in seven months, with firms reporting improved sales opportunities, though business investment remains constrained. The data comes ahead of Chancellor Rachel Reeves’ spring statement, which is expected to address ongoing economic challenges.
