The UK’s services sector improved significantly in August following July’s seven-year low, the services purchasing managers’ index (PMI) indicated.
The figures strongly rebounded in August, higher than the 50 point mark that divides contraction and growth, to settle at 52.9.
The month-on-month rise for August, at 5.5 points, was the largest seen in the 20-year history of the survey, said IHS Markit who compile the PMI.
Surveys for the construction and manufacturing industries also displayed improvements last month.
July’s Markit/CIPS Purchasing Managers Index had stood at 47.7, down from 52.4 in June, and its lowest level since April 2009. The index shows growth in services, construction and manufacturing, brought together into a composite index. Over 50 is positive and under 50 is a contraction.
“July saw business activity slumping at the fastest rate since the height of the financial crisis in early 2009,” said Chris Williamson, Chief Economist at Markit.
August's improved figures gave hopes that Brexit would not negatively impact the UK economy as some had feared.