Loosen those Brexit Bomb tin hats!
The UK’s services industry rebounded strongly in August, dealing a further blow to dire warnings of recession. The Markit/CIPS purchasing managers’ index (PMI) showed activity in UK services recorded the biggest month-on-month rise in the survey’s history.
The return to growth in services – accounting for nearly 80% of the UK economy – adds to signs of recovery in manufacturing and construction last month.
There had been fears of two consecutive quarters of falls in growth – the usual definition of a recession – but Markit chief economist Chris Williamson says the survey suggests a modest 0.1% GDP expansion in the three months to September.
So much for the Mark Carney Bank of England Governor, the Treasury, George Osborne (retd) and the IMF’s Christine (“very, very bad”) Lagarde who had us all diving for cover ahead of a Brexit Armageddon. An admission of error or even an apology, perhaps? Dream on…