A recent study suggests that the United Kingdom is beginning to cope from the punch laid out by the Brexit referendum. A recent check read that the record plunge was a reflex to the result of the vote. However, the Markit/Cips report registered the biggest monthly increase in industry's performance in the 25-years history of the purchasing managers' index- its highest since last October.
"Firms linked positive output expectations over the next 12 months to export opportunities, reduced uncertainty, stable markets, product launches, expansion plans, and a recovery in the energy sector," the survey said. It also added that companies were more optimistic about their future growth prospects now.
Markit /CIPS PMI rose to 52.9 in August from 47.4 in July, not only is it above the 50 level that divides growth from contraction, it also puts the UK on course to grow by 0.1 pc in the third quarter. Chris Williamson, chief economist at Markit said, "The UK saw business activity rebound from July's post-referendum decline in August, enjoying the strongest expansion for five months." He added, "The revival marks a substantial improvement on the 0.4 pc quarterly rate of GDP decline indicated by the July survey data. Over the first two months of the third quarter, the survey's output measure has averaged 50.3, signalling a near-stagnation of the economy. Assuming further growth is signalled by the September PMI surveys, we expect the economy to have eked out a modest GDP expansion of 0.1 pc in the third quarter."
Prime Minister Theresa May recently stated that the economy performed better than expected. "We have had some good figures and better figures than some had predicted would be the case. I'm not going to pretend that it's all going to be plain sailing. I think we must be prepared for the fact that there may be some difficult times ahead and I am optimistic."
