Thursday, May 05, 2011
Three in a row as service sector slows
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Following declines in the manufacturing and construction purchasing managers' indexes, there was also a significant drop in the service sector PMI, from 57.1 to 54.3, suggesting a slowdown across the board. This was attributed to the impact of the spending cuts.

The details, however, look reasonably perky, as described by Markit and the CIPS: "Following March's surge, growth of the UK service sector eased in April but nonetheless remained marked as levels of new business rose to the greatest extent in over a year."

Amd: "Despite the slowdown, attributed by a number of panellists to government budget cuts, growth of the service sector remained solid." Overall, Markit thinks its surveys are consistent with modest, 0.4% quarterly GDP growth.