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The UK is set to post a small expansion in March, the chief business economist at S&P Global Market Intelligence said Monday, as service sector firms noted a gradual improvement in sales opportunities. The flash UK purchasing managers composite output index published by S&P Global rose to 52.0 in March from 50.5 in February. Growing further above the neutral 50-points mark separating growth from contraction, it indicates the pace of growth sped up in March. The flash UK services PMI business activity index improved to a 7-month-high of 53.2 in March from 51.0 in February. It overshot expectations of 51.2 cited by FXStreet for March. This was amid service sector firms noting a ‘gradual improvement in sales opportunities,’ S&P Global said. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: ‘An upturn in business activity in March brings some good news for the government ahead of the chancellor’s spring statement, offering a respite from the recent flow of predominantly downbeat economic data. However, just as one swallow does not a summer make, one good PMI doesn’t signal a recovery.’ He added: ‘The signal from the flash PMI is an economy eking out a modest expansion in March, consistent with quarterly GDP growth of just 0.1%, but with employment continuing to be cut thanks to concern over costs and the uncertain outlook. Confidence is still running close to January‘s two-year low.’ The flash UK manufacturing output index fell to a 17-month-low 44.6 in March from 47.3 in February, indicating the pace of decline accelerated in March. S&P Global said: ‘In the manufacturing sector, there were many concerns about US tariffs and gloomy forecasts for export sales due to volatility in global markets. Those reporting positive sentiment for the year ahead typically linked this to investments in new technology and product development.’ The flash UK manufacturing PMI worsened to an 18-month-low of 44.6 in March from 46.9 in February. It underperformed against the FXStreet-cited consensus, which had pencilled in an uptick to 47.3 for March. Notably, private sector employment decreased for the sixth month running in March, amid business restructuring, investments in automation and the non-replacement of leavers in response to rising payroll costs, S&P Global said. The S&P Global UK PMI features a panel of 650 firms. Responses were collected between March 12 and 20. Final March data will be published on Tuesday next week for manufacturing and on Thursday for services and composite indicators. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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