UK Business Activity Surges as Middle East Tensions Ease
The UK's business activity expanded more than expected in March, according to S&P Global PMI data. Easing Middle East tensions boosted business confidence and lifted sentiment across both services and manufacturing sectors.
UK Composite PMI rose to 52.9 in March, up from 51.5 in February, comfortably above the 50 threshold that separates expansion from contraction. Economists had expected a more modest gain to around 51.8.
The services sector led the upturn, with its PMI climbing to 53.4. Manufacturing also improved to 50.8, returning to growth territory after a brief contraction.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that stronger demand and improved confidence suggest the UK economy is gaining traction. He added that easing geopolitical risks has reduced uncertainty, encouraging firms to restart investment and hiring plans.