UK PMI Manufacturing rose to 50.1 in June, up from 40.7, beat expectation of 45.3. The reading is a four-month high, and back in expansion. PMI Services rose to 47.0, up from 29.0, above expectation of 39.4, also a four-month high. PMI Composite rose to 47.6, up from 30.0, a four-month high too.
Chris Williamson, Chief Business Economist at IHS Markit, said:
“June’s PMI data add to signs that the economy looks likely return to growth in the third quarter… However, … the longer term recovery prospects remain highly uncertain…. Uncertainty over recovery prospects and job prospects also mean demand for many goods, especially non-essential big-ticket items, is likely to remain weak for many months, with Brexit uncertainty also continuing to cast a shadow over the economy.
“Our forecasting team therefore expects the economy to contract by 11.9% this year before expanding by a relatively modest 4.9% in 2021, which is far more cautious than the 15% surge anticipated in 2021 by the Bank of England.”
