Fears that Britain is heading for a recession are easing as business bounces back after a bleak autumn and winter.
In a report that pushed the pound higher, S&P Global said its index of activity in the private sector jumped from 48.5 in Jan-uary to 53 in February.
That was the first reading above the threshold of 50 for growth since last July and the strongest performance for eight months.
In a report that pushed the pound higher, S&P Global said its index of activity in the private sector jumped from 48.5 in January to 53 in February
Business in the eurozone posted a score of 52.3. ‘The sun broke through in February after six months of gloom,’ said John Glen, of the Chartered Institute of Procurement and Supply, which compiled the report with S&P Global.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, added: ‘Companies have shaken off the autumn funk that descended and, with confidence returning, there are high hopes that a UK recession will be side-stepped.’
The pound rose above $1.21 and €1.13 as investors bet the Bank would press on with another rate hike next month.
The services sector drove the recovery as ‘lower economic uncertainty, fewer supply chain shortages and falling inflation’ boosted confidence.
The Bank has raised rates from 0.1 per cent in 2021 to 4 per cent to tackle inflation. But with inflation down from a high of 11.1 per cent to 10.1 per cent, it is hoped rates are close to their peak.
Chris Williamson, S&P Global’s chief business economist, said: ‘While many companies continue to report tough operating conditions, especially in the manufacturing sector, the broader business mood has been buoyed by signs of inflation peaking, supply chains improving and recession risks easing.’
However, he warned that the possibility of recession later this year should not be ruled out.
#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .dealFooter {display:block; float:left; width:100%; margin-top:5px; background-color:#e3e3e3 } #fiveDealsWidget .footerText {font-size:10px; margin:10px 10px 10px 10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }
