UK Services Sector Gets a Boost After the Election
Things were looking pretty good last month—the services market kept on growing thanks to a calm political climate and that sweet spot of lower borrowing costs.
PMI Figures That Beat the Forecast
- August’s PMI shot up to 53.7 from 52.5 in July.
- That’s a bit higher than what economists were guessing.
Tim Moore from S&P Global Market Intelligence says the stable political backdrop nudged off the customer demand bar. “There was a modest post‑election uptick in business expectations, but by August it started to shrink a little,” he notes.
He adds that hopeful interest‑rate cuts and a steady economic scene gave firms a confidence boost. But, in a twist, some business owners still worried about whether policy will stay on track as the autumn Budget rolls around.
Who’s Watching the Money Parade?
Rob Wood, chief UK economist at Pantheon Macroeconomics, eyes the data as a sign that the Monetary Policy Committee might hold off until November before cutting rates again. He’s predicting a drop to as low as 5%.
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