Data released by the IHS Markit statistics office, part of S&P Global, on Wednesday morning showed a contraction in the purchasing managers' index (PMI) for the manufacturing and services sectors in the UK during April.
According to the reported data, the preliminary reading of the index recorded a contraction at 44 points, which was in line with expectations, and is thus lower than the previous reading for March, which was 44.6 points and had been revised to 44.9 points.
In contrast, the preliminary reading indicated that the PMI for the services sector in the UK contracted to about 48.9 points during April, the lowest level since September 2024, which was below market expectations that had anticipated the index to grow to 51.5 points. This follows a growth reading for February, which had been recorded at 53.2 points and was revised to 52.5 points.
It is noted that a reading above 50 indicates growth in activity in the manufacturing and services sectors, while a reading below 50 indicates a contraction in sector activity. Typically, two readings for this index are released within a week: the preliminary estimates and the final reading, with the preliminary estimates being released first and having the stronger impact.
