According to data from S&P Global, the service sector in the United Kingdom (UK) continued to grow in March, although at a slower pace compared to February.
The UK Services PMI Business Activity Index fell to 53.1 points last month from 53.8 in February, as revealed in a survey released on Thursday.
Despite the decrease, the latest data still remains above the 50 threshold, indicating growth, but it also marks the slowest rate of business activity expansion in the sector since November 2023.
Respondents in the survey mentioned that the UK’s improving economic conditions have been supportive of the growth in the service sector. However, factors such as squeezed disposable household incomes and high interest rates have put pressure on demand.
Tim Moore, the economics director at S&P Global Market Intelligence, commented on the findings saying, “The recovery in service sector output lost a little bit of momentum during March, and more so than suggested by the flash PMI results, but the overall picture remains reasonably positive.”
Moore also highlighted how the growth in the service sector is assisting in the UK economy’s recovery from the shallow recession experienced last year.
