GB: PMI Composite Final

At 51.5, the final PMI composite index for March was 0.5 points below the flash estimate but up 1.0 point from February's final. The composite index for March suggests the earlier half of March outperformed the later half of the month.

The service sector index rose to a final 52.5, down 0.9 points from the flash estimate but up 1.5 points from February's 51.0. This signals expansion; however, it also posts below the long-run average of 54.3. It also suggests that the latter half of March performed worse than the earlier of the month. Demand rose for the first time in 2025, aided by an increase in export, however firms also noted decreased export to US amid tensions on tariffs. Despite increased demand employment continued its downward trend with staffing numbers falling for the sixth month in a row. Business confidence rose to its highest in 2025 but remains below history trends. Rising payroll costs, and US tariffs remain a concern for the UK.

March's data put the UK RPI at 20 and the RPI-P at 32 meaning that overall economic activity is slightly outperforming market forecasts.

The Services Purchasing Managers' Index (PMI) provides an estimate of service sector business activity for the preceding month by using information obtained from a representative sector survey incorporating transport and communication, financial intermediation, business services, personal services, computing and IT and hotels and restaurants. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The data are compiled by the Chartered Institute of Purchasing and Supply (CIPS) and S&P Global.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the ISM non-manufacturing index in the U.S. and the S&P Global PMIs elsewhere, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.

The S&P Global PMI services data give a detailed look at the services sector, how busy it is and where things are headed. The indexes are widely used by businesses, governments and economic analysts in financial institutions to help better understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions published each month and are therefore available well ahead of comparable data produced by government bodies.