UK private sector output grew at its fastest pace since last September, driven by a strong rebound in the services sector<\/strong>, according to S&P Global\u2019s latest Purchasing Managers\u2019 Index (PMI).<\/p>\n\n\n\n The composite output index<\/strong> rose to 52.0<\/strong> in March, up from 50.5 in February, marking a six-month high and a solid return to expansion. Services firms, shielded from the impact of looming U.S. tariffs, saw business conditions improve as domestic and overseas sales ticked up.<\/p>\n\n\n\n The services PMI rose sharply to 53.2<\/strong>, compared to 51.0 in February. By contrast, manufacturing slumped to 44.6<\/strong>, down from 46.9 \u2014 the lowest reading since 2022.<\/p>\n\n\n\n Factory owners reported \u201csevere headwinds\u201d<\/strong> from global uncertainty and anticipated U.S. tariffs. Export sales dropped at the fastest pace since August 2023, and production volumes recorded their steepest fall in nearly 18 months.<\/p>\n\n\n\n With April 2 \u2014 \u201cLiberation Day<\/strong>\u201d \u2014 still set for major tariff announcements, businesses remain on edge. Although a delay in sector-specific levies is possible, reciprocal tariff measures are still expected to be unveiled.<\/p>\n\n\n\n The divergence between services and manufacturing has led to conflicting interpretations of the broader economic picture. Chris Williamson<\/strong> of S&P Global urged caution, saying that \u201cone good PMI doesn\u2019t signal a recovery<\/em>.\u201d<\/p>\n\n\n\n Still, services firms reported the highest confidence in five months<\/strong>, providing a welcome reprieve to Chancellor Rachel Reeves ahead of the spring statement.<\/p>\n\n\n\n However, the composite data masks deeper structural concerns:<\/p>\n\n\n\nManufacturing confidence collapses<\/h2>\n\n\n\n
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Mixed signals for UK growth<\/h2>\n\n\n\n