The latest manufacturing and services output data for the UK from IHSMarkit for January shows that there has been a slight rebound in economic activity.
That’s due to pent-up demand being released in the wake of the General Election in December.
IHSMarkit’s UK Composite Flash Purchasing Managers’ Index (PMI) is at a 16-month-high of 52.4, as is the services business activity index at 52.9.
The UK manufacturing output index is at an eight-month-high of 49.5.
“The survey data indicate an encouraging start to 2020 for the UK economy. Output grew at the fastest rate for sixteen months amid rising demand for both manufacturing and services, suggesting business is rebounding after declines seen late last year,” said IHS Markit’s chief economist Chris Williamson.
“Intensifying political and economic uncertainty ahead of the general election has started to ease, encouraging more spending and helping push business expectations of future growth to its highest since mid-2015.”