UK Service Sector Drops in March Still In Expansion Mode

Britain’s dominant services sector expanded steadily in March, pointing to solid economic growth in the first quarter, even though the rate of expansion was the slowest since last June and hiring eased, a survey showed on Thursday.

The Markit/CIPS services purchasing managers’ index (PMI) edged down to 57.6 in March from 58.2 in February, below economists’ consensus forecast in a Reuters poll for a reading of 58.1.

Still, the index remains far above the 50 mark denoting growth and pointed to robust growth in services, which account for more than three-quarters of Britain’s economy and include major banks to high street restaurants.

Growth in new business and optimism also eased. On the heels of an unexpected slip in British manufacturing growth in March, the data suggests last year’s surprisingly rapid rebound could be losing some momentum.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza