UK economy continues to accelerate in April as lockdowns are eased, PMIs show

Manufacturing and services activity in Britain accelerated further at the start of the second quarter, with the former expanding quickest as lockdowns were eased, two closely-followed surveys showed.

IHS Markit's composite output gauge, which tracks production in both sectors combined, jumped from 56.4 at the end of March to 60.0 in the beginning of April (consensus: 59.0).

As recently as January, the output index had been sitting as low as 41.2, which was comfortably below the 50.0 mark, denoting contraction at a fast pace.

The activity index for services also strengthened from 56.3 to 60.1 - its best reading since August 2014.

That for manufacturing climbed from 56.6 to 59.1.

"Companies are reporting a surge in demand for both goods and services as the economy opens up from lockdowns and the encouraging vaccine roll-out adds to a brighter outlook," said Chris Williamson, chief business economist at IHS Markit.

"In more than 23 years of PMI history, we have only seen one spell of faster growth than this, recorded between August and November 2013.

"Business activity should continue to grow strongly in May and June as virus restrictions are eased further, setting the scene for a bumper second quarter for the economy."