UK PMI Manufacturing rose to 57.9 in March, up from 55.1, above expectation of 55.0. That’s also the highest level in 40 months. PMI services rose to 56.8, up from 49.5, above expectation of 51.0, a 7-month high. PMI Composite rose to 56.6, up from 49.6, also a 7-month high.
Chris Williamson, Chief Business Economist at IHS Markit, said: “The surge in business activity is far stronger than any economists expected, according to Reuters polls, and hints at only a modest contraction of GDP during the first quarter, adding to evidence that the economy has shown far greater resilience in the third lockdown compared to the first..
“Worries persist though, especially in relation to near-record supply chain delays, a continued fall in exports and sharply rising prices, all of which are making life difficult for many companies. Many consumer facing companies meanwhile remain constrained by COVID-19 restrictions, which are likely to curb the overall pace of economic growth for some time to come, especially if we see a third wave of infections.”
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EU von der Leyen: We’re at the start of third wave of pandemic
At a press conference after a virtual summit of EU leaders, European Commission President Ursula von der Leyen said, “we are at the start of the third wave in Europe, and in many European member states, infections are on the rise again, mostly due to the variant B117.” The situation “highlights the importance of a fast and speedy vaccination” on which EU leaders agreed.
She added that the delivery of vaccines for Q2 is promising, and, “we are on track to achieve our goal, that this summer we want to have 70% of the adult population in the European Union vaccinated.”
Separately, ECB Vice President Luis de Guindos said, “if a high percentage of the population is vaccinated and immunized in the summer, this will have a very positive impact and lead to a second half of the year in which there could be a very strong rebound in activity.”