The latest business surveys support our view that the slowdown in the economy in Q3 was just temporary. Gains in both the Markit/CIPS manufacturing and service sector PMIs in October left the economy-wide composite PMI looking consistent with quarterly growth in GDP of 0.6%, following Q3’s moderation to 0.5%. (See Chart.) Admittedly, it is still early on in the quarter. But we expect tosee this improvement in activity continue in the coming months, particularly as consumer confidence remains at historically-high levels, unemployment is low and falling and households are continuing to receive a significant boost to their spending power from falls in energy and food prices.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services