LONDON: The government was handed a last-minute election boost after the last major piece of economic news before the polls signalled a booming UK services sector, easing fears of a sharp slowdown in the wider economy.
Growth in the sector, which accounts for roughly three-quarters of the UK economy and includes areas such as bars, restaurants and transport, was stronger than economists predicted, hitting an eight-month high in April.
The headline index of the Markit/CIPS services PMI – broadly reflecting activity in the sector – rose to 59.5 in April, from 58.9 in March, where anything above 5o signals growth.
The services PMI followed much weaker-than-expected equivalent surveys from the manufacturing and construction industries, which showed parts of the economy are struggling and triggered concerns that the UK recovery was faltering.
Businesses in those sectors reported that customers are delaying spending while uncertainty persists over the outcome of Thursday’s election.
