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Recovery: Purchasing Managers’ Index showed UK business activity accelerating
Britain’s private sector is growing at the fastest pace in nine months, according to new figures that add to evidence that the recession is now over.
The Purchasing Managers’ Index (PMI) showed business activity is accelerating, in stark contrast to data showing a deepening slowdown in Germany.
The UK’s GDP contracted for two consecutive quarters at the end of last year, meeting the technical definition of a recession, but there are signs it has begun to recover.
February’s ‘flash’ PMI survey gave a reading of 53.3 on an index where any score above 50 shows activity is growing.
Chris Williamson of S&P Global Market Intelligence, which compiled the figures, said: “Faster growth has been recorded for four consecutive months.”
He said the survey pointed to the economy growing between 0.2 percent and 0.3 percent in the first quarter of this year, and the highest level of business optimism in two years.
Simon Wells, economist at HSBC, said: “We are not out of the woods, but today’s PMIs add weight to the argument that the UK economy has turned a corner.”
The figures come days after Bank of England Governor Andrew Bailey suggested the “small” recession at the end of last year may already be over.
It looks like the UK will emerge from recession just as Germany enters it.
The country’s PMI figures released yesterday pointed to a deepening contraction, led by a “sharp and accelerating reduction in the manufacturing sector.”