U.K. March services PMI jumped to 45.5 from 43.2, far better than our survey median estimate for 43.8 but not a complete surprise after Wednesday's surge to the manufacturing PMI. This was the strongest reading in six months although the employment sub-index dropped a 10-year low. All other sub-indices rose with business confidence reaching its highest level since August last year, before the Lehman collapse. Though the sector is still contracting, this was the fourth monthly increase since November's record low of 40.1. There might hence be some indication that aggressive BoE rate cuts and government fiscal stimulus are having some impact, and that service providers are starting to see the light at the end of the tunnel.
