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Wednesday 4th April 2012
10 April 2012
In the Markit/CIPS survey of UK service providers, businesses reported a strengthening market climate and higher activity and sales compared with the previous month. There was also a small increase in employment as companies forecast further growth in the next year.
The survey's Business Activity Index registered 55.3 in March, an improvement on February's 53.8 and, over Q1 as a whole, the index averaged its highest reading since Q2 2010.
New business was stronger than in February, with service sector companies reporting an increased willingness of clients to make firm business decisions. Respondents also noted that higher enquiry levels and being able to squeeze more work from existing contracts had supported March's growth.
David Noble, chief executive of the Chartered Institute of Purchasing & Supply, said: "The UK service sector has rounded off Q1 in confident fashion, with growth at its highest since Q2 2010, showing that fears of a double dip recession were unfounded. Although some customers continue to seek more for less, consistent increases in activity alongside greater certainty over new business are positive signs for the year ahead.
"Although the economy remains fragile, companies are responding to clients' willingness to make firm business decisions, by hiring more staff and undertaking marketing initiatives, which they are increasingly optimistic will pay off."
He added: "Market conditions remain difficult and we are not out of the woods by any stretch. A slight concern is that the increase in new orders, crucial for sustained growth, continued to be outstripped by gains in overall activity during March."
The UK services sector saw growth during March, according to the latest Purchasing Managers' Index.
In the Markit/CIPS survey of UK service providers, businesses reported a strengthening market climate and higher activity and sales compared with the previous month. There was also a small increase in employment as companies forecast further growth in the next year.
The survey's Business Activity Index registered 55.3 in March, an improvement on February's 53.8 and, over Q1 as a whole, the index averaged its highest reading since Q2 2010.
New business was stronger than in February, with service sector companies reporting an increased willingness of clients to make firm business decisions. Respondents also noted that higher enquiry levels and being able to squeeze more work from existing contracts had supported March's growth.
David Noble, chief executive of the Chartered Institute of Purchasing & Supply, said: "The UK service sector has rounded off Q1 in confident fashion, with growth at its highest since Q2 2010, showing that fears of a double dip recession were unfounded. Although some customers continue to seek more for less, consistent increases in activity alongside greater certainty over new business are positive signs for the year ahead.
"Although the economy remains fragile, companies are responding to clients' willingness to make firm business decisions, by hiring more staff and undertaking marketing initiatives, which they are increasingly optimistic will pay off."
He added: "Market conditions remain difficult and we are not out of the woods by any stretch. A slight concern is that the increase in new orders, crucial for sustained growth, continued to be outstripped by gains in overall activity during March."