Service sector output rises, despite falling confidence

The services sector has continued to rebound, despite plummeting business confidence levels. Output in hospitality, retail and other services rose last month to its highest level in 10 months, from 60.5 in February to 62.6, according to the Purchasing Managers’ Index for the sector, compiled by S&P Global and the Chartered Institute of Procurement and Supply. The figure is higher than flash estimates and far exceeds the 50 mark that separates growth from contraction. The rebound in consumer demand after Covid restrictions were lifted at the end of January has continued, according to the panel of 650 services companies surveyed between 11 and 29 March. However, businesses’ expectations for sales in the year ahead fell for the second consecutive month after Russia’s invasion of Ukraine in February, and were at their lowest since October 2020. The Times (£)