UK Businesses Grow at Fastest Pace in Five Years

A survey showed that British companies in the services and manufacturing sectors grew at the fastest pace in more than 5 years last month, with the start to recover from the effects of Covid-19 on the economy.

The IHS Markit / CIPS final composite Purchasing Managers’ Index (PMI) rose to 57.0 from 47.7 in June, its highest since June 2015. The services PMI also rose, to a five-year high of 56.5 from June’s 47.1

“UK service providers are starting to see light at the end of the tunnel after a record slump in business activity during the second quarter of 2020,” IHS Markit’s economics director, Tim Moore, said.

PMI numbers reflect the rate of growth, not the level of production, and some economists report that it may take years for Britain to recover the figure by 25%.

The composite PMI’s employment index stayed unchanged from June to July and remained well below 50, suggesting most employers plan to cut staff.