Economy
U.K Services PMI Rebounded in August
U.K Services PMI Rebounded in August
The U.K Services sector rebounded in August, as the economy continued to differ post-Brexit fallout.
The powerhouse services sector, which makes up about 80 percent of the UK economy rose to record 52.9 in August from 47.4 in July, according to the Markit/CIPS Purchasing Managers Index (PMI).
In July, the services sector dip at fastest pace in 7-years, after the Britons voted to leave the European Union. Since then the economy has rebounded
However, given the drop in business activities in July, the overall economic growth in the third quarter was likely to be about 0.1 percent, IHS Markit said.
“But there’s plenty of anecdotal evidence to indicate that the initial shock of the June vote has begun to dissipate,” said Chris Williamson, an economist at IHS Markit. “It remains too early to say whether August’s upturn is a dead cat bounce or the start of a sustained post-shock recovery.”
The pound jumped to 7-week high after UK services PMI published biggest rebound in 20 years.