Hopes of a strong recovery from the depths of the coronavirus crisis
Growth in the UK’s private sector hit a five-year high in July following a “surge” in business activity despite initial reports that demand was weaker than expected. The composite purchasing managers’ index (PMI) reading from IHS Markit’s closely watched survey came in at 57.1, far ahead of expectations and significantly above June’s figure of 47.7. PMIs are an indicator of private sector activity and are given on a scale of 1 to 100. Anything above 50 signals growth, while anything below means contraction. Looking to manufacturing, IHS Markit said that a “sustained recovery” in production capacity led to the fastest expansion of manufacturing output since November 2017 this month, with the sector’s PMI climbing to 53.6 from 50.1 in June. Chris Williamson, chief business economist at IHS Markit said: “The UK economy started the t hird quarter on a strong footing as business continued to reopen doors after the COVID-19 lockdown”.