Business Activity Hits a Three-Month High, Survey Shows
British private-sector activity grew at its fastest pace in three months in July, a closely watched business survey indicated on Friday, a further sign that the economy is holding up. The S&P Global flash survey pointed to the first expansion in three months, with firms reporting easing cost pressures, helped by summer spending and the warm weather. The pound firmed on the improved picture.
The data, following Friday morning’s stronger-than-expected retail-sales figures, suggests the economy carried some momentum into the summer despite the oil-price shock and elevated borrowing costs. Easing cost pressures, if sustained, would be welcome news for the Bank of England as it weighs the inflationary threat from crude near $100. But economists warned that the war-driven energy spike could yet feed through to prices and dent confidence in the autumn. It hands Mr Burnham a second piece of reassuring economic news in a single day. Watch the hard output figures to confirm the survey’s optimism.