UK service providers signalled a modest rebound in business activity growth following the snow disruptions seen during March. However, aside from the low point recorded last month, the latest upturn in service sector output was the softest for just over a year-and-a-half. Subdued new business growth persisted in April, which contributed to a further slowdown in the rate of job creation. Meanwhile, survey respondents also noted that higher payroll costs continued to drive up operating expenses and place a squeeze on margins. A

t 52.8 in April, the seasonally adjusted IHS Markit/CIPS UK Services PMI® Business Activity Index picked up slightly from March's 20-month low of 51.7. The latest reading still only signalled a moderate increase in service sector activity, with the rate of growth the second-weakest since September 2016.