UK economic data looking stronger

Strong service sector economic data provided a strong boost to the UK’s recovery yesterday showing the sectors output expanded at its fastest pace since early 2010. UK economic data looking strongerThe official figures from Markit now look certain to confirm the UK will avoid slipping back into recession (defined as two consecutive quarterly falls in GDP).

The main Business Activity Index registered at 55.3 in March up from 53.8 in February and above the 53.4 market forecast (above 50 indicates growth).

Markit said that service companies maintained their increased workloads in March by adding to payrolls at a modest rate at the same time as creating new jobs for future growth.

This could be seen in the latest job numbers from Reed who claim vacancies were up 9% against the same period last year.

As for the rest of today we have Bank of England rate and Quantitative Easing decision later, both are expected to remain at 0.5% and £325bln respectively.

This afternoon we have the NIESR GDP estimate which is highly respected and are posted one month before the official figure.

These numbers are ahead of tomorrows Non-Farm Payrolls in the US where we are expecting further positive strides in the job market where they are expecting 205,000 new jobs and the unemployment rate to remain at 8.3%.

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