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Further Improvement In UK Services Sector

James Boston
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Further Improvement In UK Services Sector

The robustness of the UK economic recovery received confirmation yesterday in the form of an unexpected rise in the Manufacturing sector data. Further evidence of strength has been presented this morning under the guise of the Purchasing Managers Index (PMI) for the UK Services sector. The August figure just released by Markit Economics is 60.5, which represents a rise on the already strong July number of 59.1, market analysts were slightly less optimistic in their predictions of a reading of 58.5. The UK’s PMI Composite number is now reading at 59.3, unsurprisingly up from the July number of 58.6.

The UK’s economic recovery received further merit yesterday in the form of a boost in ranking in the World Economic Forum’s (WEF) Global Competitiveness Report. The UK moved up one place in the rankings to take ninth spot. Switzerland holds top place for the sixth year in a row, Germany is in fifth place and the US moved up to positions to take third position behind Singapore.

The WEF Report credits the UK’s rise in rankings to the performance gains achieved due to lower levels of fiscal deficit and public debt. Additionally noting that Britain is benefiting from an efficient labour market and ‘a high level of financial development’ the report went on to applaud the UK’s large and highly competitive market which allows for the development of innovative and sophisticated businesses.

Hampering the UK’s progress up the rankings, according to the WEF, are a problematic banking system and the resultant difficulties that this creates for both businesses and consumers in raising finance. Finally, the WEF advised that the UK should look at effective ways of raising the overall quality of it’s education system, it however placed particular emphasis on the areas of mathematics and sciences noting that these skills will be crucial for fostering further innovation lead growth within the economy.

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