‘We expect consumer spending to slacken in coming months, with the April survey highlighting continued weakness in sectors such as hotels, restaurants and other household-facing businesses.’ – Chris Williamson , IHS Markit
British services activity rose unexpectedly last month, suggesting that the economy recovered from a sluggish start. Marki/CIPS reported on Thursday that its Purchasing Managers’ Index for the UK services sector came in at 55.8 in April, the second highest since mid-2015, following the preceding month’s 55.0 and surpassing analysts’ expectations for a decline to 54.6. The PMI surveys released this week are set to provide significant support to the current PM Theresa May and the Conservative Party ahead of the June 8 National Election. Thursday’s data also showed that prices charged by service providers rose at the fastest pace since July 2008 amid the sharp fall in the value of the Pound after the Brexit vote. Moreover, more companies lowered their outlook for economic growth and business activity in the sector. Markit reported that according to its PMI surveys the British economy was expanding at a 0.6% pace in the Q2. Furthermore, Markit said that the economy would lose its positive momentum soon, as rising prices continued putting significant pressure on households.
