The British economy is showing signs that passed through the worst of its recent slowdown caused by bad weather, after the dominant services sector grew more quickly than expected.
Despite the good news from recent business surveys by IHS markit and the chartered Institute of purchasing and supply (cips), a key Barometer for the largest sector in the economy revealed mounting fears for the quarter and month.
The last snapshot from markit/cips UK purchasing managers ‘ index for the services sector showed that activity in the sector, which includes banks, restaurants and hotels, restored to three-month high in may. However, firms responding to the survey said that the volume of business continues to grow at a moderate pace, with reference to the British exit from the EU as one of the main causes of slow growth.
The Director of the ISP group, Duncan Brock, said, “it seemed that the sector lost this month his blood, as the UK worries continued to claw away in confidence.”
The unemployment rate
The unemployment rate
Reading at MIT, where anything above 50 indicates expansion, rose to 54.0 in may from 52.8 in the previous month, exceeding economists ‘ expectations for a moderate increase to 53.
Showing great strength for the economy than previously feared, growth will put pressure on the Bank of England to raise interest rates, possibly in August. Lb reflected that optimism, rising to two-thirds of a cent to 1.3275$.
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Treadmillit delayed the growth of borrowing costs last month after “the beast from the East” blew the economy off course, preferring to wait and see if businesses and consumers will return to spending and the sale of goods, as usual.
Providers in the latest survey resulted in a catch-up of snow associated with the violation of the first three months of the year, along with the sustained rise in new orders. However, the latest increase in overall new work was still one of the weakest seen since the summer of 2016, immediately after the referendum.
Chris Williamson, chief economist at IHS, business markit, said: “with forward-looking indicators telling us that the economy can return to growth is not guaranteed.”