Growing Services in UK offers respite Rachel Reeves before spring statement

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The services helped to force the release of the UK private sector to grow more than expected in March and the fastest pace in six months, causing a positive note for Rachel Revez before the spring statement on Wednesday.

The previous reading of the heads of composite buyers in the UK, a private sector measure, increased to 52 in March, compared to 50.5 in February and the highest since September.

It was much higher than 50, separating growth and reduction, and higher than the 50.3 economists in the Reuters survey. The PMI index for the services has increased to a seven -month high of 53.2.

Chris Williamson, Business Economist in S&P Global Market Intelligence, said Spring statementOffering a respite from recent streams of predominantly economic data. ”

Expected a shize on Wednesday to be uploaded sharp decrease According to budgetary responsibility – to the UK growth – from 2 percent to approximately 1 percent, according to budgetary responsibility – after weak than the expected economic data.

Analysts expect higher borrowing costs and slow economic growth have destroyed the chancellor’s fiscal “stock”, causing billions of pounds when it seeks to fulfill its financial rule to balance the budget up to 2029-30.

Rob Wood, economist Consultancy Pantheon Macroeconomics, said Rise PMIS showed that “the economy decreased when firms digest taxes on wages and fears of further taxes this month disappear.”

Wood said that in the first quarter of 2025, it expected 0.3 percent, after only 0.1 percent increased in the last three months last year and stagnated in the third quarter of 2024.

But despite a stronger reading PMIS, Williamson said tumor“, Especially in financial services.

According to a poll, which came to consumer enterprises and manufacturers, which are part of the companies affected by the national insurance premium of employers, and the minimum wage since April has continued to fight economic turbulence and abroad.

While the services were actively fulfilled, the production index decreased to a 17-month minimum of 44.6, with the company in the sector report that it is required from the growth of global economic uncertainty and the prospects for tariffs in the US.

The weak international demand in March led to a rapid decline in export sales since August 2023, according to a poll, which was conducted in the first half of the month.

In March, the driving speed slowed down by mitigating the fears caused by the previous PMI data, which reported the sharpest rates of reduction in 2008-09. Global financial crisis except pandemic.

Inflation of the cost of entering also decreased compared to the nine -month maximum reached in January, but remained much higher than the average on average.

Bank of England last week Continued interest rates 4.5 percent, after voting a quarter of points in February, as he repeated plans to find a “gradual and careful” approach to a greater reduction.

Financial markets pricing between one and two quarter of point cuts by the end of the year.

Ashley Webb, Economist Consultancy Capital Economics, said the weak economy will allow Boe to reduce interest rates to 3.5 percent next year.

However, he added that a slower rate of reduction to the number of tabs, as well as the concern of the enterprises over the prices, increased “the chances of stopping the stop rate a little earlier … perhaps in May, not in August.”