Analysts said the bigger than expected surge in business activity appeared to show that the UK would narrowly avoid a recession, though the squeeze on consumer spending from the energy crisis and a struggling manufacturing sector would continue to put the brakes on the economic recovery.
Bank of England rate-setters said in their most recent outlook for the UK economy they expected gross domestic product (GDP) to shrink by about 1% across this year and the first quarter of 2024, making it the only G7 nation to suffer a recession in 2023.
The early or “flash” measure of private sector activity by S&P Global/Cips found that the services industry index jumped to an eight-month high of 53.3, where a figure above 50 indicates expansion.
The index shows how much firms have increased production, employment and their order books to achieve a rounded measure of commercial activity.
Services companies, which make up about three-quarters of private sector activity, reported a stronger demand for business services “amid an improving global economic outlook and reduced domestic political uncertainty”.
Read more at The Guardian
