Although the unexpected rise in the composite activity PMI in April suggests the economy grew faster at the start of Q2, the more marked fall in the services output prices balance may make the Bank of England feel a bit more comfortable to cut interest rates for the first time in the coming months (perhaps in June). But the risk is that activity remains strong and results in services CPI inflation stalling further ahead.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services