UK economy bounces back in January
- The UK economy returned to growth in January, according to data released on Friday, but analysts were divided over whether this would be enough to keep the Bank of England from cutting interest rates next week.
- The IHS Markit/CIPS flash composite purchasing managers’ index – which measures activity in both the manufacturing and services sectors – rose to 52.4 in January from 49.3 in December, coming in above consensus expectations for a reading of 50.7.
- The services PMI increased to 52.9 from 50.0, versus expectations of 51.1. The manufacturing PMI, meanwhile, printed at 49.8 this month from 47.5 in December, surpassing expectations of 48.8.
- Business activity expanded for the first time in five months, driven by the sharpest increase in new work since September 2018.