(AOF) – According to the results of the S&P Global/CIPS monthly survey of purchasing managers, private sector activity in the United Kingdom unexpectedly rebounded in February thanks to the dynamism of services. This index stood at 53 in February, its highest in eight months, once morest 48.5 in January. A figure above 50 signals growth in activity, and therefore dispels concerns regarding a recession predicted by many observers in the United Kingdom. As a result, the pound sterling rose 0.84% to 1.136 euros.
Following the release of the UK PMI, Chris Williamson, Economist at S&P Global said: “Much better than expected PMI data for February indicates encouraging resilience in the economy”.
Before adding: “However, while the data suggests that short-term recession risks have diminished significantly, elevated inflationary pressures clearly remain a concern, particularly in the services sector. As such, the resilience of the economy and the persistence of inflation indicators from the survey increase the likelihood of further, and potentially more aggressive, policy tightening from the Bank of England, which might dampen expectations for future growth and suggest that the possibility of a recession later in the year should not be ruled out.”
