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UK private sector activity picks up in April, cost inflation spikes
By Michele Maatouk
Date: Thursday 23 Apr 2026
(Sharecast News) - Activity in the UK private sector picked up in April, while cost inflation saw its biggest month-on-month jump in 30 years as customers brought orders forward amid expectations of price hikes, according to a survey released on Thursday.
The S&P Global flash PMI composite output index rose to 52.0 this month from 50.3 in March. A reading above 50.0 indicates expansion, while a reading below signals contraction.
The services PMI business activity index printed at 52.0 in April, up from 50.5 the month before, while the PMI for manufacturing was 51.8 versus 49.2 in March.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the economy had gathered some renewed momentum in April after the initial impact of the Iran war caused growth to stall in March. However, the upturn came with a catch.
"The improved rate of expansion is in part a reflection of a short-term boost from a rush to secure purchases ahead of feared price rises and supply shortages linked to the war," he said.
"Prices have spiked higher at a rate not previously seen by the survey outside of the pandemic, suggesting inflation could rise more than many forecasters have been anticipating. Prices are rising not just because of surging energy costs, but also due to increases in charges levied for a wide variety of goods and services, with price hikes often stoked by supply concerns. The number of supply delays reported has jumped to the highest on record if the pandemic is excluded.
"Business confidence and employment have also been dragged lower by the ongoing conflict, boding ill for growth to weaken in the coming months just as price pressures intensify."
Williamson said the survey highlights the difficult choices faced by the Bank of England.
"The spike in price pressures will add to calls for rate hikes to dampen inflation, but the Bank will need to carefully assess the degree to which economic growth might weaken," he said. "While April's PMI is indicative of the economy rebounding from a flat picture in March to a 0.2% quarterly growth rate, the details of the survey hint strongly that this pace cannot be sustained should the crisis persist."
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