UK Economy Surprises with Signs of Growth Amid Headline Turmoil
The UK economy is showing signs of growth, despite a gloomy impression from news headlines. The Purchasing Managers' Index (PMI) has revised its forecast for August, indicating an increase in growth.
The services sector, which accounts for the largest portion of the economy, scored 52.5, with anything above 50 indicating growth. This is the best reading since April and a slight improvement over July's 52.1.
Manufacturing has been in growth for five months, but slipped slightly to 51.7 from 51.9 in July. However, production levels are driven by new work and improving demand from domestic and overseas clients.
New car registrations rose by 13.7% to 94,236 units in August, a traditionally slow month due to the twice-yearly number plate change.
Economic surveys show that business leaders' top two concerns are tax uncertainty (58%) and general policy uncertainty (55%).