The improvement in all three Markit/CIPS PMI surveys in June provided further signs that the economy has rebounded after the weak start to the year. Indeed, the all-sector PMI rose from 54.3 in May to 55.0, suggesting that quarterly GDP growth has accelerated to 0.4% or so in Q2 – up from 0.2% in Q1 and in line with the Monetary Policy Committee (MPC)’s forecast. Note too that if anything the surveys might be understating growth since the service sector PMI does not account for activity on the high street, which has rebounded strongly in Q2 so far. Overall, then, the figures provide reassurance that services – and overall economic – growth has picked up some pace in the second quarter. As things stand, we remain comfortable in our view that interest rates will rise at the MPC’s next meeting on 2nd August.
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