According to the report from IHS Markit/CIPS, UK service providers recorded a rise in business activity during April, thereby signalling a return to growth following the marginal decline seen during the previous month. However, the rate of expansion was only slight, and another fall in new work highlighted that subdued underlying demand conditions persisted. Employment numbers were broadly unchanged during the latest survey period, with companies reporting that higher wage costs and weaker sales had led to cautious staff hiring policies.

The seasonally adjusted PMI Business Activity Index posted 50.4 in April, up from March's 32-month low of 48.9. Despite a change of direction for service sector activity, the rate of expansion was much softer than on average in 2018. Survey respondents continued to report that Brexit uncertainty and concerns about the UK economic outlook had encouraged clients to postpone spending decisions.