After an abrupt contraction in July following the outcome of the shock Brexit vote, the services sector recovered in August, enjoying its biggest monthly increase in 20 years.
The Markit/CIPS Purchasing Managers’ Index (PMI) for the services sector jumped to 52.9 in August from July’s seven-year low of 47.4, beating consensus forecasts of a reading of 50.
Chris Williamson, of IHS Markit, said: “A record rise in the services PMI adds to the encouraging news seen in the manufacturing and construction sectors in August to suggest that an imminent recession will be avoided.”
However, he reckons it is still “too early to say whether August’s upturn is a dead cat bounce or the start of a sustained post-shock recovery, but there’s plenty of anecdotal evidence to indicate that the initial shock of the June vote has begun to dissipate.”
