British services PMI rises to 53.7 in March

British services purchasing managers' index (PMI), a gauge measuring the industry activity, registered 53.7 in March from 52.7 in February, said data supplier Markit on Tuesday.

According to Markit's report, total activity remained sluggish in March, and on a quarterly basis growth over the first three months of 2016 was the weakest since the first quarter of 2013.

Service providers continued to expand workforces in March. The rate of job creation was solid overall, but remained weaker than the trend shown over the current 39-month sequence of growth.

Firms highlighted weak and uncertain global demand, as well as domestic factors such as the EU referendum, the housing market and public spending cuts as potentially undermining growth.

"Business confidence remains in the doldrums as concerns about the global economy continue to be exacerbated by uncertainty at home, with nerves unsettled by issues such as Brexit and the prospect of further government spending cuts announced in the Budget," Chris Williamson, Chief Economist at Markit, commented.

The survey data suggest growth is more likely to weaken further in the second quarter. With the PMI already in territory traditionally associated with the Bank of England choosing to loosen policy, interest rate hikes seem a long way off, he added. Enditem