AGI – The UK services SME in April has risen to the top for seven and a half years, driven by a strong increase in business and consumption. The flash services SME, calculated by IHS Markit, advanced to 61 points, the highest since October 2013, from 56.3 points in March. The improvement is largely attributable to easing pandemic restrictions and increased short-term optimism on the economy, which is reflected in an increase in top hiring since 2015.
“The April data – comments Tim Moore, economic head of IHS Markit – show that a surge in pent-up demand has started to flow through the UK economy following the easing of pandemic restrictions. The roadmap for the reopening of leisure, hospitality and other customer-facing businesses have led to a sharp increase in orders. If the rebound in order books continues along this trajectory during the remainder of the second quarter, production growth is very likely of the services sector will surpass the record recorded in April 1997. The successful launch of the vaccine continued to underpin expectations of a strong recovery next year. Job creation was the strongest in five years and a half and, for the first time since the start of the pandemic, there have been reports citing staff shortages as a factor holding back growth. Inflationary pressures remained a supplier service concern in April, with higher personnel costs, transportation bills and commodity prices adding to business expenses. The overall rate of input cost inflation was the fastest since February 2017 “.
Meanwhile, in Germany, strong domestic consumer demand drove industrial orders, which in March grew by 3% in seasonally adjusted terms, exceeding the expected + 1.7% and after an increase revised upwards of 1.4. % in February and 0.8% in January. The demand for orders from abroad grew by 1.6%.
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