The services industry accounts for nearly 80 per cent of the UK economy, therefore after a shock fall in July following the Brexit vote, there were unsurprisingly high hopes and speculation surrounding bringing services back to pre-Brexit levels.
The shock and worry that the June referendum outcome brought about has now begun to ease, as the services industry shows signs of recovery following the latest The Markit/CIPS purchasing managers’ index (PMI) survey.
From July to August the index rose from 47.4 to 52.9, which is the biggest month-on-month rise in the survey’s history. Computing and IT, financial services, hotels and restaurants contributed to the recovery, according to the survey.
Chris Williamson, chief economist at Markit said: “Many companies are seeing business return to normal either simply by customer confidence rising, or a stoic determination to ‘Buck Brexit’ and carry on regardless.”
Regarding the construction industry, senior economist Tim Moore said: “Construction firms cited a nascent recovery in client confidence since the EU referendum and a relatively steady flow of invitations to tender in August.”
The UK’s services industry rebounded strongly in August, suggesting the country will “avoid recession”, according to a closely-watched survey.
Posted on Tuesday, September 6, 2016