British economy demonstrates steady third-quarter surge

British economy demonstrates steady third-quarter surge

In August, the British services sector speeded up more than anticipated, thus offsetting a deceleration for manufacturing as well as construction businesses, although Brexit fears are affecting investment plans for the year ahead.

In August, the IHS Markit/CIPS Purchasing Managers' Index jumped to 54.3 from July’s outcome of 53.5, thus beating all estimates in a Reuters survey of market experts and soaring further above the 50-mark, which stands for surge.

According to the PMI, there has been a repeat of the UK economy's 0.4% quarterly surge ate observed for the three months to June.

The British economy has speeded down since the June 2016 Brexit vote.

Nevertheless, in August, the Bank of England had interest rates lifted for the second time for ten years because of worries that labor shortages as well as other capacity constraints are going to prevent inflation getting back to its 2% objective in the short term.

In the services sector, employment intentions rallied to a six-month maximum, although confidence for the year ahead dived to its lowest value since March because  businesses told that Brexit uncertainty had made customers less willing to invest.

By the way, UK Prime Minister Theresa May is expected to agree the terms of the country’s future relationship with the EU, which is less than seven months before Great Britain leaves the trading bloc.

Financial services turned out to be the key contributors to the surge. UK businesses posted softer demand from retailers.

A great number of clients are heavily affected by inflation, which has been ascending faster than their salaries for much of the previous decade.

Businesses in the PMI poll posted paying higher wages to recruit hard-to-find employees. Moreover, they have reduced employee turnover, which was restricting their ability to have some projects completed.


Latest news

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera