(Alliance News) - The UK service sector grew in April, according to business activity index survey results showed Friday.

The seasonally adjusted S&P Global UK services PMI business activity index edged up to 55.0 points in April from 53.1 in March. The reading indicates an expansion of growth, rising further above the 50.0 no-change mark. FXStreet-cited consensus had been expecting a reading of 54.9.

This marks an 11 month high, S&P said.

Meanwhile, the seasonally adjusted S&P Global UK PMI composite output index registered 54.1 in April, up from 52.8 in March. This marked the sixth consecutive month in positive territory. This was higher than consensus of 54.0.

"Service providers benefited from improving business and consumer spending in April as more favourable demand conditions underpinned the greatest improvement in activity since May 2023. The latest survey results are consistent with the UK economy growing at a quarterly rate of 0.4% and therefore pulling further out of last year's shallow recession," said Tim Moore, economics director at S&P Global Market Intelligence.

"Business activity expectations for the year ahead were upbeat overall in April, therefore adding to signs that the recovery in service sector performance has further to run. Election uncertainty and fading prospects for interest rate cuts were cited as headwinds on the horizon, but survey respondents still mostly reported positive sentiment towards their business investment plans and longer term growth opportunities."

The composite PMI is compiled by S&P Global from responses to questionnaires sent to survey panels of around 650 manufacturers and 650 service providers in the UK. Responses were collected between April 11 and 19.

By Holly Beveridge, Alliance News reporter

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