In August, the UK’s services industry had a burst of overall growth, suggesting that the country will avoid the anticipated post-Brexit recession. The PMI index showed that activity in the services industry recorded the biggest month-on-month rise in history.
The index recorded a score of 52.9 in August which rose from 47.4 in July, indicating growth and restoring the levels to pre-referendum heights. The PMI is a survey of business managers who gauge whether or not their firm’s activity has increased month by month. The growth for the services industry, which makes up nearly 80 per cent of the UK’s economy, has shown signs of recovery following two falls in economic growth that lead to fears of a recession.
The survey found that computing and IT, financial services, hotels and restaurants contributed to the recovery.Two leading institutions have also cancelled predictions of a post-Brexit recession and have revised their economic forecasts.
Credit Suisse and Morgan Stanley both lifted their growth predictions for this year and next year and also removed the expectation of a recession. They did however say that the Brexit vote will still slow growth.