People wearing protective masks look at a market stall at Columbia Road Flower Market after its reopening following the Covid-19 outbreak, in London, July 19, 2020. — Reuters pic
That compared with a June reading of 47.7, which stood below the key 50-level that separates contraction and expansion. “The latest survey indicated a return to growth for the service sector and a much faster rise in manufacturing production than seen in June.”Chris Williamson, chief business economist at IHS Markit, said the data fanned hopes that the broader economy could return to growth in the third quarter or three months to September — but warned that there was “a long way to go”.
Most economists expect another sharp slump in the second quarter, or three months to June, that would place Britain in a technical recession. “Many households are therefore likely to remain cautious with respect to spending with the job market deteriorating.”In other upbeat news today, official data showed that UK retail sales rebounded by almost 14 per cent in June as non-essential shops reopened from lockdown, extending May’s 12-per cent gain.