A STRONG survey of the service sector firms has reaffirmed economists’ views that a slowdown in growth at the start of the year will prove to be temporary.
The service sector purchasing managers’ index compiled by Markit scored 59.5 in April, according to figures released yesterday. Scores above 50 signify growth, with higher figures pointing to faster growth.
It shows growth in the service sector, which makes up nearly 80 per cent of the economy, was faster than in March when the survey scored 58.9.
“It still looks as though the economic recovery has got quickly back on track,” said economist Vicky Redwood from Capital Economics.
The economy slowed at the beginning of the year, growing only 0.3 per cent from January to March, according to preliminary figures, but Redwood believes there’s still a good chance these could be revised up.
“It looks like the economy has rebounded from the weakness seen at the start of the year,” said economist Chris Williamson from Markit. “Fears of the economy slumping amid election jitters are allayed.”