UK services sector gives welcome boost to economy
The UK services sector appears to be rebounding far quicker than many expected with the CIPS/Market services PMI index showing a rise to 58.4 in February against 54.5 in January and expectations of 54.9. This is a sector which covers everything from financial services through to hotels and restaurants and has been the engine room of the UK economy for some time. Slowly but surely it seems as though the doom and gloom which has hovered over the UK economy for two years is now starting to lift and we can hopefully begin to look forward to the future with anticipation.
It is difficult to highlight how vital the services sector is to the UK economy because ultimately without a recovery in the services sector there would be no recovery in the UK economy. The manufacturing base of the UK all but disappeared some years ago and while there are still some manufacturers left in the country this sector is just a pale shadow of its former self.
While it is wrong to suggest that all economic data of late has been positive, there is no doubt we have seen more positive news in the last two months that we have seen in the last twelve months. Is this the start of a growth period for the UK economy?
Share this..
Related stories
Bank of England agrees to maintain quantitative easing programme
Bank of England minutes from the September meeting have been released today showing that the vast majority of members voted in favour of maintaining the quantitative easing programme at £175 billion with the potential to increase this in due course if required. This move has been taken well by the currency markets where sterling has moved higher in early trading but there is still some concern ab...
Read MoreBank of England set to increase quantitative easing programme
The Bank of England monetary policy committee is today expected to agree a £50 billion increase in the quantitative of easing programme which will bring the total funds available to £225 billion. This is a situation which has been ongoing since February and while it has had an impact on the UK economy there are concerns that it is now running out of control and the extra funds may not have the d...
Read MoreIs the UK government passing the regulatory buck?
Despite the fact that the Bank of England has been central to the UK regulatory system for hundreds of years it is noticeable that in today's White Paper regarding regulatory changes in the UK there were no new powers for the bank. Instead the UK government has chosen to increase the stature and power of the FSA (Financial Services Authority) amid accusations that the government has more power and...
Read MoreAre we moving away from a worldwide free-market?
The massive increase in both local economies and the worldwide economy has purely and simply being the result of a free-market the likes of which we have never seen before. Billion pound financial transactions are now commonplace around the world and businesses are able to operate and attract customers from all corners of the globe. While there are obviously a number of regulations and rules in pl...
Read MoreLord Mandelson plays an ace for Vauxhall workers
Lord Mandelson has today claimed victory in the fight to secure up to 5000 jobs at Vauxhall's UK plants, following the ongoing takeover of GM Europe by Magna. It would appear that a potential £400 million sweetener, which the UK government will inject into the German authorities £4 billion state funding, may have done the trick.
Only yesterday we saw Magna suggesting that a new v...