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With the composite output index climbing to 52.0 from March's 50.3—a two-month high—today's flash UK PMI for April 2026 points to a new increase in private-sector activity. The recovery was led by manufacturing, as the Manufacturing PMI rose from 51.0 to 53.6 and the output index reached 51.8. Meanwhile, services saw a slight increase to 52.0, boosted by a small rise in new orders and a decrease in labour shortages.
But one big obstacle is price strain. Driven by rising energy prices and persistent supply chain disruptions caused by Middle East turmoil, input price inflation reached a three-year high. In reply, companies increased output prices at the fastest rate in 15 months, underscoring ongoing inflationary pressures for the Bank of England and suggesting that domestic demand could face tougher real-cost conditions despite the growth spurt.
In essence, the data suggest a sturdy but vulnerable road to recovery: Backed by manufacturing and services, the private sector is growing; nevertheless, sticky inflation and rising input prices may slow down the rate of increase and influence the BoE's policy stance. Near-term momentum depends on energy stability and supply chains, with the possibility of growth if price pressures ease and demand remains strong.
