Activity across the UK’s private sector grew to a four-month high in August, propped up by a “robust upturn” in new business, according to indicative data.
The flash figures are based on preliminary data. Any score below 50 indicates activity is contracting, while any score above means it is growing. Survey respondents said more upbeat assessments of the domestic economic outlook of late have spurred efforts to boost business capacity. “Although GDP growth looks set to weaken in the third quarter compared to the impressive gains seen in the first half of the year, the PMI is indicative of the economy expanding at a reasonably solid quarterly rate of around 0.3%.
Last month, the Bank cut the base interest rate to 5%, a quarter-point reduction, prompting economists to speculate over whether another rate cut will come at the next meeting of the Monetary Policy Committee in September or later in the year.