PMI week: UK headed for slight growth in Q1 2013

Services sector saves the day.

The all-sectors PMI for March, released today by Markit Economics, has risen slightly from 50.7 in February to 50.9. Taken with January's recent peak of 51.7, it indicates a low level of growth throughout the first quarter of 2013 – not enough to cheer about, but enough to ensure that the Chancellor doesn't have to face the embarrassing prospect of standing up in the House of Commons and confirming that he has steered the country to a triple dip recession.

The PMI posts a result above 50 when the indications are that there has been expansion in the economy, and the higher the number, the greater the expansion. With the results hovering very close to 50 for the last quarter, any expected growth is likely to be minuscule, and Markit's chief economist, Chris Williamson, says the data is "consistent with a mere 0.1% quarterly increase in GDP". The PMI results track GDP relatively well, but there are always fluctuations, and so for the final results we will have to wait until the first estimate from the ONS, in two week's time.

If we do see growth, it will likely come entirely from the service sector, which has recovered well from the dip at the end of last year. The same cannot be said for construction, which has been negative for almost all of the last year, and manufacturing, which boomed last winter but has recently begun to contract again:

 

Looking further afield, Williamson says that:

[0.1 per cent] is clearly a far from satisfactory pace of growth, although anecdotal evidence from survey contributors indicated that poor weather has caused disruptions to many businesses in recent months, meaning the underlying recovery trend is likely to be stronger than the recent data suggest. We would therefore expect to see faster economic growth in the second quarter, barring any surprises such as a further worsening of the eurozone crisis or further severe weather.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Matt Cardy/Getty Images
Show Hide image

What did Jeremy Corbyn really say about Bin Laden?

He's been critiqued for calling Bin Laden's death a "tragedy". But what did Jeremy Corbyn really say?

Jeremy Corbyn is under fire for describing Bin Laden’s death as a “tragedy” in the Sun, but what did the Labour leadership frontrunner really say?

In remarks made to Press TV, the state-backed Iranian broadcaster, the Islington North MP said:

“This was an assassination attempt, and is yet another tragedy, upon a tragedy, upon a tragedy. The World Trade Center was a tragedy, the attack on Afghanistan was a tragedy, the war in Iraq was a tragedy. Tens of thousands of people have died.”

He also added that it was his preference that Osama Bin Laden be put on trial, a view shared by, among other people, Barack Obama and Boris Johnson.

Although Andy Burnham, one of Corbyn’s rivals for the leadership, will later today claim that “there is everything to play for” in the contest, with “tens of thousands still to vote”, the row is unlikely to harm Corbyn’s chances of becoming Labour leader. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.