UK records fastest growth in 11 months

S&P/CIPS has released the preliminary Composite Purchasing Managers' Index (PMI) data for the UK for April. Accordingly, the composite PMI, which was 52.8 points in March, rose to 54 points in April, reaching its highest level in the last 11 months.

The country's service sector PMI was 54.9 in April. The service sector, which represents 80 percent of the country's economy, saw an increase compared to the 53.1 level in March, reaching its highest level in the last 11 months in April. 

The manufacturing sector PMI, meanwhile, fell to 48.7 in April, its lowest level in the last 2 months. The manufacturing sector PMI had been 50.3 in March.

In PMI data, a level above 50 is interpreted as sectoral growth, while a level below this is interpreted as a contraction.

INTERPRETED AS AN EXIT FROM STAGNATION

In the statement, S&P Global Market Intelligence Chief Business Economist Chris Williamson noted that the preliminary PMI data for April shows that the UK economy's exit from last year's stagnation continues to gain momentum.

Williamson stated that growth in the service sector compensated for the decline in the manufacturing sector, and used the following expressions:

"Growth has encouraged firms to provide more employment, and this has led to a sharp rise in cost pressures due to the increase in the minimum wage in April. Although inflation has retreated somewhat, firms may try to increase prices in the coming months due to strong demand and rising costs. While the improving economic recovery picture is welcome, the upward pressure on inflation will increase concerns that a sustainable path toward inflation below the target has not yet been reached"