UK services PMI in April to rise to 55.4 from 55.0 – Lloyds Bank

Hann-Ju Ho, Research Analyst at Lloyds Bank, expects the headline UK services PMI in April to rise to 55.4 from 55.0, a level close to the historic average and consistent with ongoing growth in the sector.

Key Quotes

“This is above the market consensus forecast for a fall to 54.5. Although the distribution sector is likely to feel pressure from softer consumer spending, the services sectors covered by the PMI are likely to stay more resilient. Both the manufacturing and construction PMI surveys surprised on the upside this week.”

“Bank of England mortgage approvals and consumer credit   figures for March are also due. We look for a softening of approvals to 66.7k from 68.3k.”

“Local elections will take place in Scotland (all 32 councils), Wales (all 22 councils) and parts of England (34 councils, plus new local majors in some areas). The proximity of these elections to the general election on 8th June may potentially provide a hint on the outcome of the latter, with polls suggesting a significantly increased majority for the Conservatives.”