UK economy
Marketing No Comments

UK economy is expected to accelerate recovery in 2021

OPTIMISM is being felt for the UK economy as the best reading on record has been found in a survey of business activity.

A purchasing index from the IHS Markit saw a surge in growth and employment in the latest reading this month.

IHS credits the surge to the continued unlocking of society and consumers being more confident to visit pubs and restaurants as the Covid-19 vaccine rollout continues.

It follows a rise in business activity seen in March when the retail sector reopened after the third lockdown.

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However, GDP has fallen by 1.5 per cent in the first quarter.

The IHS has warned that although business activity is on the rise, inflation could also surge as consumer prices are increasing.

Early this week it was revealed that the UK’s inflation rate more than doubled to 1.5 per cent in March, it is the highest rate seen in the UK for a decade.

By Gareth Cavanagh

Source: News and Star

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UK economy
Marketing No Comments

UK business activity grows at its fastest pace since 1998

UK business activity has grown at its fastest pace for more than two decades, according to early economic data for May.

The closely-followed IHS Markit/CIPS Flash UK Composite PMI report came in at 62 for the month, up from a reading of 60.7 in April.

Any reading above 50 represents growth in output.

The reading signals that the UK has seen its strongest growth since the index began in 1998, on the back of “strong” growth in both the manufacturing and services sectors.

Relaxed pandemic restrictions and pent-up demand from consumers also helped to spark a rise in employment, with the figures highlighting the fastest rise in private sector employment for more than six years.

The services sector – which includes hospitality firms which have benefited from eased restrictions this month – saw a reading of 61.8 for the months, marginally below analyst predictions.

Meanwhile, the manufacturing reading surged to 66.1, the highest figure since the survey began.

Chris Williamson, chief business economist at IHS Markit, said: “The UK is enjoying an unprecedented growth spurt as the economy reopens.

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“Factory orders are surging at a record pace as global demand for goods continues to revive, and the service sector is reporting near-record growth as the opening up of the economy allows more businesses to trade.

“Business confidence has meanwhile hit an all-time high as concerns about the impact of the pandemic continue to fade.”

However, the rebound also resulted in price inflation with costs pressures at “the strongest for nearly 13 years”.

Duncan Brock, group director at CIPS, said: “Manufacturers keen to secure raw materials for the coming months were forward buying with greater intensity and contributing to the ongoing poor performance of supply chains as delivery times increased to record-levels.

“This in turn compounded the number of shortages and impacted on the costs of goods and raw materials.”

Source: Irvine Times

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