Britain’s services sector came to the rescue in April, with growth there suggesting there is further growth out there in the wider economy.
It also suggests the Q1 figures may need revising as they were far more pessimistic about GDP in particular.
Surveyors Markit/CIPS said the April numbers pointed to “robust growth momentum”, and that the weak start to the year was over.
However that upswing in purchasing managers’ confidence was not reflected in the construction and manufacturing sectors, which both weakened and were showing “warning lights flashing about the sustainability of growth.”
The latest figures confirm investment spending remains weak, and that the economy as a whole has become services-heavy. It, along with consumer spending, are increasingly the sole agents of growth.
Productivity is flatlining, so any slowing in growth will immediately create fiscal pressure and hit living standards.
Also on Wednesday the National Institute for Economic and Social Research lowered its growth forecast for economic growth this year to 2.5 per cent, down from the 2.9 per cent it forecast in February.